Sinking sales at its Lexus luxury division have prompted Toyota to lay off some 800 workers at a Japanese plant where certain Lexus models are assembled. All 800 workers were temporary hires provided by an outside agency, and Toyota claims that at least 500 of the temps will be brought back at some point in the future. It seems that Toyota, along with other Japanese automakers, are increasingly using these temporary workers so that they can more easily adjust their payroll to changing market conditions. This tactic has drawn the ire of many in Japan, a country where loyalty is seen as extremely important. In total, Toyota's daily sales rate dropped by 18% last month while Lexus saw an even larger 25% fall, by far the largest of all the major Japanese brands. [Source: The Detroit News]
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Reader Comments (Page 1 of 1)
VinceP @ Aug 5th 2008 4:39PM
Good time to buy a Lexus?
They currently have "The Event" going on, whatever that means. Previous "Events" such as the "December to Remember Sales Event" give no details about any deals they might be offering. They must have decided simplifying is in order.
Why are they one of the few (only?) makes that does not put dealer inventory on their website? (BMW and Audi do.) I think they're doing some voodoo to our minds.
MemphisNET @ Aug 5th 2008 4:48PM
The sales event is quite simple. 2009 models are coming, we need to make room by clearing out old stock.
VinceP @ Aug 5th 2008 4:55PM
@MemphisNET
So what deals are you running to clear the 2008 inventory? Financing? Cash back? +over invoice?
What quantifiable means can you tell "The Event" is any different than other parts of the year.
MemphisNET @ Aug 5th 2008 5:05PM
Common sense. New models are coming, they're advertising to move cars. As for numbers, I don't have any - but if history repeats itself (and when it comes to new models, it always does) there will savings.
mike @ Aug 5th 2008 4:48PM
Detroit makes horrid vehicles, absolutely horrible, cheap and inefficient. Toyota make good cars, quality and fuel economy are better than any most car companies, in any segment, cars or trucks. Yes Tundra’s get better MPGs than whatever GM sells, it was here on Autoblog about a month ago.
Looks are, looks, looks are not something people will agree on, I personally love the way Prius looks.
But what drives me crazy is the fact that Toyota gets a total pass on quality of its interiors, last week I was in Toyota dealership, my god is Prius’ interior cheap and ugly. The car looks great from outside but from the inside it is a horror.
Folks, if anyone in here ever been in Pontiac G5…that is what Prius feels like inside. Honda Civic’s interior is so good, it is not even in the same class as Toyota. I also was in Camry, interior is also shabby, so is Yaris, and so is Corolla. This is the reason they are losing sales. I also sat in new Malibu over the weekend, looks good but interior is cheap to the touch, I would say it is better than Camry’s to look at, but just as cheap to the touch.
One more time, Prius is as ugly as it gets inside.
johneboy @ Aug 5th 2008 5:07PM
Can you give more details, facts, statistics, numbers proving your statement that "Detroit makes horrid vehicles, absolutely horrible, cheap and inefficient." The price of gas has spiked and put the Big 3 at risk because they gambled on SUV's. I will fault them for that, but your statement condemning everything the Big 3 build is sheer ignorance. Prove your statement! I want more than just sales numbers! If you can write it, back it up! I'm waiting!
Mike @ Aug 5th 2008 6:23PM
mike,
WTF are you talking about?
2008 F150 4X4, 5.4L- 13/17
2008 Chevy Silverado 4X4, 6.0L- 13/18
2008 Tundra 4X4, 5.7L- 13/17
2008 Focus, 2.0L- 24/35
2008 Cobalt, 2.2L- 22/31
2008 Corolla, 1.8L- 26/35
I don't know, seems your efficiency theory seems flawed.
Then there's quality, J.D. Power ranks overall initial quality:
2008 Ford Fusion- 5
2008 Chevy Malibu- 5
2008 Toyota Camry- 4
Any other blanket statements you want to make?
johneboy @ Aug 5th 2008 7:43PM
Why is Mike replying to Mike? You must be some kind of bipolar auto fanatic. One moment you love the imports and then you drop them. Explain?
Dennis @ Aug 6th 2008 1:33PM
LOL, your going to attempt to compare the new Fusion and the new Malibu to the Camry. The Camry has had excellent quality recordes for years and years and now your going to try to compare new comers withing a JD power INITIAL quality comparison. Try the same in 5 to 10 yrs. Then compare your Ford and GM garbage.
2008 Ford Fusion- 5
2008 Chevy Malibu- 5
2008 Toyota Camry- 4
johneboy @ Aug 6th 2008 3:23PM
I think Mike changed his name to Dennis. Even when the numbers go in favour of the big 3, import lovers still don't get it.
why not the LS2LS7? @ Aug 5th 2008 4:52PM
Employment for life has never extended to many of the people responsible for making Japanese cars (or products) anyway. This is because the Japanese use a system of contracting and subcontracting. Your Honda is full of Nippondenso parts. And when Toyota buys fewer parts from Nippondenso, Nippondenso lays off their workers or else passes the pain onto their subcontractors who do so.
The US companies have tried to move more to a system like this also, and have been somewhat successful.
So anyway, if you went to U of Tokyo (or perhaps one of the other national seven universities) and get a job in the Toyota head office, you are set for life. But the manufacturing workers don't really have the same assuredness.
JT @ Aug 5th 2008 5:40PM
800 laid off........it's not like Toyota/Lexus have shut there doors..........BUT IT'S DAM CLOSE. Glad to here it!!!!!!!!!!!!
Quentin @ Aug 5th 2008 10:41PM
How is that "DAM CLOSE"? There are likely 5,000 normal employees at that facility. Also, the word you are looking for is "hear". The public education system has obviously served you well.
Either way, cutting temporary workers is a normal thing in a down economy. That is the reason that many automakers have temporary workers in the first place. It allows them to adjust their volume to match demand. I'm not particularly a fan of the practice of having temporary workers, but it is a necessary evil in today's auto environment.
Harrison @ Aug 6th 2008 12:41AM
You are aware that Toyota/Lexus as a whole employs significantly more than 800 people?
sillybilly @ Aug 5th 2008 5:43PM
I agree. Toyota sucks. They are so frikin cheap inside it's a joke that anyone would buy it. Oh, it's a reliable appliance. Just boring as an old naked lady in bowl of Jello.
ebm14 @ Aug 5th 2008 6:47PM
The Japanese companies have gone too far
when if comes to having it's labor sent overseas, particularly in the US. I'm not putting down the US workforce in any fashion, but if Japan fails to employ its own workers, their country will have terrible economic problems in the long run. It might be best to have their works assemble the most important part and then ship
to countries to assemble to better balance everything.
Mi key @ Aug 5th 2008 7:29PM
I've heard that these workers are South Americans, Is this true? Wow! Who would have guess that the Japanese have borders problems like the US.
Mitesh Damania @ Aug 6th 2008 7:13PM
Looks like the Japanese are also afflicted with having MBA graduates from Hardvard.