Toyota to cut domestic production by 20% in October: sources+

TOKYO, July 21 Kyodo -
Toyota Motor Corp. plans to cut its domestic production in October by 20
percent from the planned output level for the previous month due to an expected
slowdown in demand after the expiration at the end of September of the
government's subsidies for purchasing fuel-efficient cars, sources close to the
matter said Wednesday.
Toyota had planned to produce about 14,000 cars per day in Japan for the period
from July to September, and it now plans to cut the output figure for October
to below 12,000 units, the sources said.
If the plan is realized, it will be the first time Toyota's domestic production
has fallen below 12,000 since July 2009 when the company manufactured 11,868
units a day in Japan.
Toyota plans to inform affiliated parts makers of the production plan for
October later this week.
For most of Toyota's affiliated parts makers, daily domestic production of
12,000 units is a break-even point, and a prolonged production cutback is
expected to hurt their earnings.
For the whole of fiscal 2010 ending next March, Toyota, however, plans to
maintain its domestic output plan at 3.2 million units in anticipation of a
rush in demand before the end of the government's subsidy program for greener
cars, as well as a moderate recovery in sales in October or later.
==Kyodo
2010-07-21 23:24:45


Delete & Prev | Delete & Next