Toyota to further cut production in N. America

[December 10, 2008]  TOKYO (AP) -- Toyota Motor Corp. said Wednesday it would further reduce production at several factories in North America, as the global slowdown continues to cut into the automaker's sales abroad.

Japan's largest carmaker will temporarily suspend output in December and January, according to Toyota spokesman Paul Nolasco.

Production will be stopped in Indiana for six days, Kentucky for nine days and Canada for 10 days. In addition, production of the Corolla and Tacoma brands at a plant in California jointly run with General Motors will be suspended for 10 days.

The latest reductions follow those in the U.S. and Canada announced last month, including cutting several hundred contract workers.

Toyota has also suspended production at factories in Japan, and slashed its profit and overall production targets. Bonuses for midlevel managers will be cut by 10 percent.

The company is feeling the effect of the economic slowdown in the U.S., where its sales tumbled 34 percent in November, including a 35 percent slump in its Lexus luxury line.

But it is not in the dire straights of its U.S. rivals, which are waiting for Congress to approve $15 billion in emergency loans from Washington.

[Associated Press]

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