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Toyota to halt work at Japanese plants

Falling demand and Covid-19 outbreak lead to carmaker’s decision to limit production at its factories in April.
Posted on 06 April, 2020
Toyota to halt work at Japanese plants

Toyota Motor Corporation suspended seven production lines at five domestic plants on April 3 to adjust to weak global demand due to the global coronavirus pandemic.

The decision marks the first time Japan’s biggest carmaker has halted operations at domestic factories since the coronavirus outbreak started. The five plants all produce cars for export and the halt will lead to production cuts of about 36,000 units, according to the company.

Output at the Miyata plant in Fukuoka Prefecture will be suspended for the longest period, continuing through to April 15.

All operations will be stopped at Toyota’s Tsutsumi and Tahara plants in the Aichi prefecture, while some operations will be idled at its Takaoka plant, also in Aichi, and its Hamura factory in Tokyo. The latter is run by subsidiary Hino Motors.

The company is recommending plant workers use paid holidays during the period. If they choose to work, they will be tasked with coming up with ideas to improve production efficiency.

Toyota reported that its global production fell by 13.8 per cent in February from a year earlier. Worldwide production for the Toyota Group, which includes Daihatsu and Hino, declined by 12.2 per cent to 762,802 units. Global sales dropped by 4.6 per cent.

Automotive output has been suspended in many countries since the virus broke out in China late last year. Toyota is temporarily halting production at all plants in Europe, as well as joining Honda in extending the closures of factories in the US and Canada.

Toyota will also suspend its plant in Russia for five days starting from April 6. It adds vehicle and parts factories that have seen operations suspended in six other nations, including the UK and Turkey, are likely to be halted at least until April 19.

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