Toyota halves production, shuts manufacturing plants

The world's largest car manufacturer will halve its local production from next month in response to the global financial crisis.

The Asahi newspaper reported yesterday that Toyota is planning to cut production to around 9,000 vehicles a day in Japan - more than half its current domestic numbers - and possibly close several smaller JDM plants for indefinite lengths of time. The company apparently needs to produce around 11,000 units daily to return a profit.

The Kyodo News also reported that Toyota will suspend operations at all but one of its 12 domestic factories for three days this month, and for 11 days during February, March and April at all 12 plants.

The local papers discovered the plans after Toyota contacted its main component suppliers with greatly reduced orders.

It is rumoured that plans for new plants in some markets, R&D, and even some future models have been shelved.

Locally, Toyota has killed off the long-planned TRD Aurion and HiLux after only 18 months and 900 sales, and is currently reviewing its local motorsport involvement.