As sales slump, Toyota cuts bonuses and vehicle production

As sales slump, Toyota cuts bonuses and vehicle production

Filed under: Japan, Plants/Manufacturing, Toyota, Earnings/Financials

Management bonuses will be slashed 10 percent at Toyota as a result of the global economic slowdown. About 5,000 managers will take cuts as the Japanese automaker reels from falling global sales that are hitting its local market hard. Toyota vehicle sales in Japan dropped 27 percent in November (excluding 660cc minivehicles) and Lexus sales dipped 24 percent -- mirroring the same sales issues that both brands are having in the United States. As a result, the Japanse Juggernaut will halt production for two days on one of the Tahara production lines manufacturing the Lexus LS, GS and IS models, which will prevent about 5,000 luxury cars from being built, and idle another factory in southern Japan for two days, as well. Toyota is also expected to announce lower sales and production estimates at its year-end press conference that happens at the end of this month. That news will follow the 1 trillion yen ($10.7 billion) yanked just last month from its annual operating profit forecast.

[Source: Automotive News, subs. req'd]





As sales slump, Toyota cuts bonuses and vehicle production originally appeared on Autoblog on Tue, 02 Dec 2008 19:01:00 EST. Please see our terms for use of feeds.



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