• Aug 27th 2009 at 9:01AM
  • 26
Japan's Nikkei has reported that Toyota is will cut production by 10% in its next fiscal year, from ten million to nine million vehicles. To do that, Japan's largest automaker is said to be shutting down an entire production line in its home country for a year-and-a-half starting next spring. There is also speculation that Toyota will shut down a production line in the U.K. as well.

The news come even as Toyota has been putting out more cars due to global scrappage schemes and incentives, and some of its products, like the Lexus HS 250h, can't be made fast enough.

If Toyota does cease production on both lines and close the endangered NUMMI plant in California, that will eliminate 700,000 cars from its annual tally – which would mean more painful measures to be taken, according to the Nikkei report. But unlike its Japanese compatriots at Honda and Nissan, Toyota is still writing in red ink, and it doesn't expect to fully turn the corner in the near term. Toyota's official statement is that it hasn't yet decided on the depth of the cuts.

[Source: Automotive News, sub. req'd | Image: Justin Sullivan/Getty]


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  • 26 Comments
      • 6 Years Ago
      "The news come even as Toyota has been putting out more cars due to global scrappage schemes and incentives, and some of its products, like the Lexus HS 250h, can't be made fast enough."

      Toyota is smart enough to know that global scrappage programs will end soon (some already have) and the only reason the HS 250h is selling so well right now is because it is brand spamking new and the first dedicated luxury hybrid ever. This is a good move on their part, and when the scrappage programs end and the initial HS 250h hype is over, this production cut will pay Toyota dividends.
      • 6 Years Ago
      Ehhhhh

      I'm not usually the one to say this but, late news is no news, especially when all the big media outlets covered this days ago. Hell, I think you covered it too.
        • 6 Years Ago
        Late news is definitely NOT no news. I am sure there are a lot of people, myself included, that are reading about this for the first time on Autoblog.
      • 6 Years Ago
      That's utterly false. There's no lack of competition even if every Japanese car company suddenly disappeared. The Japanese have taken huge advantage of broken trading policies of the US. They have basically done their level best to destroy American manufacturing while being conviniently aided by media who treat them with kid gloves and turn a blind eye to things like vehicle fires, sludged engines, locked up transmissions, etc. The people of Europe learned long ago that it benefits them to buy from the people who put food on their table and pay the bills to keep the lights on in their country.
        • 6 Years Ago
        "You aren't helping yourself here Bloke. Nissan is owned by Renault which is based in France and Jaguar cars is owned by Tata Motors which is based in India (how's that for irony!)"

        As I said, you don't appear to understand how companies are structured. Renault does not own Nissan - each company has a stake in each other however Nissan's shares do not carry voting rights. Nissan remains a Japanese company with a multitude of subsidiary companies all over the world, including its NMUK Ltd British manufacturing company. That company is domiciled in Britain, owns all of its UK assets and liabilities and conforms to UK company law. Everything it buys produces contributes to the local economy and the national economy as a whole. Likewise, Jaguar Cars Ltd is a British company - it happens to have an Indian parent company. The Indian parent owns the shareholding which is part of Jaguar's capital - the products Jaguar produces contribute directly to the UK economy. If Jaguar itself set up a further manufacturing subsidiary company in America, the products it would produce would contribute to the US economy. Companies within a group are separate legal entities.

        "And you mention the Nissan Micra being designed in France - once again. Where's the high paid talent? Not England. The cars are being assembled in England, not made there. The talent that makes the cars is in France in this case - and citing the Nissan Micra, not much talent anyway."

        The Micra is built in England and in Japan. The latest model was not designed in France but at Nissan's European design centre in London. It shares a platform with Renault due to Nissan's alliance with Renault. A good deal of the engineering work was carried out in the UK, and the British plant builds the car using a multitude of UK suppliers.

        It's high time you got off your jingistic American horse, hopped on a plane and understood how the world really works.

        • 6 Years Ago
        Just tell them what? That the first place that Toyota is going to go to cut is not Japan? That's a big shocker there. Thanks for reinforcing exactly what I was saying.
        • 6 Years Ago
        "Most English people would also tell you that England isn't Europe and it's precisely because of policies like the ones used by the US government that England no longer has a domestic auto industry."


        Well there's ignorance the world over, isn't there? The fact of the matter is that there are more cars and commercial vehicles built in Britain now then there was during the days of both BL and the Rootes Group, and the contribution the UK car industry makes towards the country's economy is far higher now than ever it was while those companies were in existence.

        A combination of greedy union domination, poor product and ineffective management killed off BL, nothing more.
        • 6 Years Ago
        Bloke,

        Most English people would also tell you that England isn't Europe and it's precisely because of policies like the ones used by the US government that England no longer has a domestic auto industry.
        • 6 Years Ago
        "The reasons for the collapse of the British automobile industry I fully agree with you on. However, there is no UK car industry today, because all of these companies building cars in England are part of someone else's car industry."

        You seem to be yet another Autoblog poster who doesn't understand how companies are structured. Any company domiciled in England & Wales (or Scotland, which uses different company law) is a British company regardless of whether it is a holding company, a parent company, or a subsidiary company. And before you even utter it, no, subsidiary company's profits DO NOT automatically go to the parent. Therefore, Nissan GB Ltd or Jaguar Cars Ltd are part of the British automotive industry - as are their suppliers. The business they generate all contributes to the UK economy and balance of payments, which is very favourable when it comes to the UK industry as some 70% of all vehicles built in the UK are exported. Some 1.6 million cars and 0.3 million commercial vehicles are built in the UK each year.

        "I am highly suspicious of the claim that the economic contribution of vehicle assembly only is anywhere near equivalent to the engineering, design, and production for an entire industry. I'd love you to put up some links to those figures."

        Be suspicious all you like; Nissan's Micra and Note, for example are built at their UK plant for some 50 markets worldwide, although some Micras are also built in Japan for their domestic market and other RHD markets in the Pacific Rim. Both cars were designed and engineered wholly by Nissan's European operation and share platforms with sister company Renault. If you're unaware of how to obtain UK industry figures, simply contact the Society of Motor Manufacturers and Traders in London or visit their website, as anybody au fait with the UK industry would.
        • 6 Years Ago
        You aren't helping yourself here Bloke. Nissan is owned by Renault which is based in France and Jaguar cars is owned by Tata Motors which is based in India (how's that for irony!)

        And you mention the Nissan Micra being designed in France - once again. Where's the high paid talent? Not England. The cars are being assembled in England, not made there. The talent that makes the cars is in France in this case - and citing the Nissan Micra, not much talent anyway.
        • 6 Years Ago
        "That's utterly false. There's no lack of competition even if every Japanese car company suddenly disappeared."

        I had a feeling you wouldn't latch on to my drift. For every car manufacturer that goes out of business, there's less competition and less competition results in less incentive for remaining manufacturers to act in the best interest of the consumer.
        • 6 Years Ago
        "The people of Europe learned long ago that it benefits them to buy from the people who put food on their table and pay the bills to keep the lights on in their country."

        Precisely. Since the late 1980's, the people of north-east England realised first-hand that companies such as Nissan setting up shop brought along a huge boon for the local economy and renewed pride for those previously experiencing long-term unemployment.
        • 6 Years Ago
        bigmclargehuge,
        It's B I G O T - it's got only one "T"

        If wanting the best for your country and your people (like the Japanese do) and then acting on it on a national and individual level (like the Japanese do) is bigotry then I guess I'm guilty. I'm so ashamed.

        • 6 Years Ago
        just tell that to the thousands of NUMMI employees who will soon be unemployed.
      • 6 Years Ago
      A company trying to forecast future sales and curtailing production instead of ramping it up when the writing is clearly on the wall?

      Utter nonsense for car companies!!!!!!
      • 6 Years Ago
      Not sure why there's all the hate on Toyota. How is Hyundai better? They're products are just as boring save for 1 or 2 models. It's pretty pathetic to write: "They need to get their d**ks knocked in the dirt. " It just shows you uneducated and possibly, what is it, xenophobic, you are.

      Give it a rest. It's a sign for the entire industry if a major maker is struggling. GM, Ford, Honda, Toyota, VW. They're all struggling.
        • 6 Years Ago
        Have you seen a Hyundai lately?
        • 6 Years Ago
        No single culture on earth is more xenophobic than the Japanese. It's high time their biggest carmaker and the darling of the automotive media finally starts to take some lumps.
        • 6 Years Ago
        "No single culture on earth is more xenophobic than the Japanese."

        Sounds like you manage to cap them every step of the way, then.
      • 6 Years Ago
      Big 3 should learn from this and move to more nimble work force, start replacing Union with non union workers would be a start.
      • 6 Years Ago
      This sounds smart to me. Every person who was considering buying a new Toyota in the next 6-9 months time probably just splurged on getting one in the Cash for Clunkers program instead. They are probably predicting a drought in new car sales for the next several months at least and planning ahead.

      Seriously, did no one see the short-sighted market manipulation in Cash for Clunkers? Purchases during the clunkers time was borrowing against near-future purchases of new cars.
      -N
      • 6 Years Ago
      1 Million sounds like a big number, but it's not if you look at this being just a 10% reduction for Toyota and the fact that global sales are down much more than 10%. Over capacity is killing the industry but if you can get away with reducing capacity less that the industry contraction, then you're doing relatively OK.

      This post is an obvious attempt at stirring the comment-flamers up (Toyota vs. GM). I suggest balancing posts like this with some industry context.
      • 6 Years Ago
      that is what you call a good start. I'm glad to see Toyota is doing their part to save our roads from boredom.
      • 6 Years Ago
      Most Toyotas are built by union workers. I guess you didn't know that.

      http://search.japantimes.co.jp/cgi-bin/nb20090219a3.html
      • 6 Years Ago
      Toyota got too big too fast and fell like GM did. The bigger you are...
        • 6 Years Ago
        Fell like GM did, except for the bankruptcy and nationalization part I suppose...
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