CHINA: FAW Toyota to cut production - report
Toyota is to scale back production at its largest Chinese venture but has no plans to lay off workers, according to local news reports.
The China Business News quoted FAW Toyota president of sales Satoru Mori as saying that the company would be lowering output by an estimated 7% to 8% this year. He added that the company may also adjust its production plans next year to bring them in line with market conditions.
The article did not say whether the 7-8% fall in output was a reduction on previous full year estimates or the remainder of the year.
Earlier this month, Toyota cut its automobile sales forecast for China by 100,000 vehicles to 600,000 this year. Toyota's previous target would have represented 40% year-on-year growth, but the revised gain will be 20%.
China's economic slowdown has been affecting demand in the country.
In Thailand, Toyota Motor Thailand (TMT) has already said it will make fewer vehicles next year than the 570,000 it had been estimating for this year as exports have been hurt by the global recession.
TMT president Mitsuhiro Sonoda told the Bangkok Post earlier this month that exports are going down in most markets because of the worldwide recession.
"That has prompted us to cut volume planned for next year," he said.