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]