Toyota to shut down for 11 days

[American Patriot]

Nothing further follows.

[Malsua]

Any surprise here? There's a glut of cars. The fact that it is Toyota should emphasize to everyone that this isn't a fake issue.

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Toyota to shut car plants for 11 days

By Michiyo Nakamoto in Tokyo
Published: January 6 2009 01:39 | Last updated: January 6 2009 02:42

Toyota on Tuesday said it would halt production at most of its domestic plants over an additional 11 days in February and March, highlighting the impact of the relentless decline in global demand.
Japan’s largest carmaker, which has been a benchmark for quality and efficiency, said it was cutting 18 shifts over 11 days, or the equivalent of nine days worth of production at all 12 of its domestic facilities in those two months.
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The cutbacks, which come on top of three days of production stoppages this month, will affect most of Toyota’s models made in Japan, excluding those outsourced to subcontractors, the company said.


Toyota’s decision underscores the pain being felt across the global automotive industry, which has seen sales plunge in key markets, such as the US and Europe.
The Japanese carmaker is forecasting its first operating loss in 71 years, of Y150bn ($1.6bn), compared with an earlier estimate of Y600bn in operating profits.


The production halt comes as Japanese car sales, including mini-vehicles with engine sizes of 660cc or less, last year dropped to 5.08m, or just 65 per cent of sales in 1990, which hit a peak of 7.78m units.


Toyota, which had been expected to become the first carmaker to hit the 10m sales mark, globally, cut is sales estimate for the year to 7.54m units, or 15 per cent below last year’s volume.

[Ryan Ruck]

No surprise... Looking at most of the massive auto dealers here, their lots are chock full o' cars with not many moving. Fact is, most auto makers are going to have to not only scale back on their car prices (as I had said before an average price of $30k for a new car is stupid) but, they are also going to have to cut back on overall numbers.