Toyota reduces Japanese output

Toyota plans to reduce output by around 220,000 vehicles by closing a plant in Aichi – the first time the Japanese manufacturer will suspend operations at one of its domestic factories. Reports from Japan have suggested the auto maker could cut its overall capacity by up to one million cars a year and there have been suggestions of production in the UK coming to a stop too.

PA automotive expert Engelbert Wimmer comments: "The reaction of Toyota is surprising and clear at the same time - not further allowing overcapacity in manufacturing footprint. Being challenged by dramatic implosion of sales Toyota has no alternative but to reduce the production capacity on a global scale. Happening now this demonstrates that the new management with leadership of Toyoda san is effective and takes problems very serious. Cutting capacity in the home market can be seen as a signal that Toyota is willing and able to master the crisis. They will come back stronger than before when the crisis will be over - and the rest of the industry should prepare for an even stronger competitor out of Japan."