Stung Toyota Cuts Production Deeper In N.a.

fbachman · November 19, 2008

When you're not ham-strung by unions, it's easier to adjust the workforce to meet the needs of production....

Automotive News

November 18, 2008 - 8:31 pm ET

Toyota Motor Corp. will halt production at all of its U.S. and Canadian auto plants for two days in December to reduce its robust flow of vehicles into a sagging U.S. market.

The automaker also will cut back 2009 production levels at its big multi-car factory in Georgetown, Ky., as well as at its assembly plants in Princeton, Ind., and Fremont, Calif.

The reductions will affect all North American-made models, including the Camry, Corolla, Matrix and the just-introduced Venza crossover.

The two-day work stoppage on Dec. 22 and 23 will knock about 9,000 Toyota and Lexus vehicles out Toyota's inventory.

"We are just trying to adjust to the market," says Mike Goss, spokesman for the automaker's North American manufacturing operations.

Goss says that Toyota employees around North America will be paid to come into work on Dec. 22 and 23, even though the lines will be stopped.

The schedule adjustments represent the latest U.S. manufacturing correction for the high-flying Toyota this year.

Fewer cars per hour

Despite the resilience some of its models have shown to the industry's steep downturn this year, Toyota is now sharing the pain. Total U.S. sales of Toyota, Lexus and Scion brands fell 23 percent in October, leaving Japanese officials in the unfamiliar position of fretting publicly about lost profits.

The company now plans to reduce headcount at its Georgetown plant by eliminating about half of the 500 temporary workers employed there. At the same time, the automaker will slow down the line speed of one of Georgetown's two lines, which builds the Camry, Solara and Venza, starting in January.

Rather than churn out cars at the rate of one every 55 seconds, the line will slow to one every 69 seconds.

At Toyota, the tweaking of production flow by even a few seconds per minute often takes months of planning and has reverberations throughout the North American supply chain.

Toyota will also cut Sienna minivan production in Princeton by half starting in January. That plant will retain both of its shifts, but the two shifts will share in the reduced output. No employees will be laid off, Goss says.

Smaller pickups

The company also will eliminate the second shift on its Tacoma pickup line in California starting in January.

However, a smaller Tacoma plant in Tijuana, Mexico, will not be affected by the cutbacks, nor be included in the two-day December stoppage. Toyota is under an agreement with the Mexican government to build 50,000 vehicles at the plant this year and needs those two days to meet its obligation, Goss says.

The company suspended production of its Tundra pickup and Sequoia SUV for three months this fall. It also scrapped a plan to build a new Highlander factory near Tupelo, Miss., opting instead to add Highlander production to Princeton, and converting the Tupelo project into a Prius car plant.

merlin5577 · November 19, 2008

Thats all I have to say.

SLESierra · November 19, 2008

It would be great if they would just halt production period and pay those employees to come to work still

geektoad · November 19, 2008

It would be great if they would just halt production period and pay those employees to come to work still

Uh..

Goss says that Toyota employees around North America will be paid to come into work on Dec. 22 and 23, even though the lines will be stopped.

from the original post.

SLESierra · November 19, 2008

I mean period as in FOREVER

Bowtie2Sierra · November 19, 2008

Even though we know our trucks are superior to Toyota's, I still respect Toyota as a company. They are very well managed and have implemented innovative processes into their supply chain to ensure quality and reliability. Personally, I find no happiness in the fact that they are feeling some financial pain from the industry in which they compete. They are a formidable competitor who should be respected, IMO.

VMax2007 · November 19, 2008

Even though we know our trucks are superior to Toyota's, I still respect Toyota as a company. They are very well managed and have implemented innovative processes into their supply chain to ensure quality and reliability. Personally, I find no happiness in the fact that they are feeling some financial pain from the industry in which they compete. They are a formidable competitor who should be respected, IMO.

F**K'em!!!

When Japan signs the NAFTA, then maybe I will consider it.

Zembonez · November 19, 2008

Even though we know our trucks are superior to Toyota's, I still respect Toyota as a company. They are very well managed and have implemented innovative processes into their supply chain to ensure quality and reliability. Personally, I find no happiness in the fact that they are feeling some financial pain from the industry in which they compete. They are a formidable competitor who should be respected, IMO.

F**K'em!!!

When Japan signs the NAFTA, then maybe I will consider it.

I agree that we should all be on a free trade or no trade agreement.

Toyota is on a lot firmer ground than GM at the present. They aren't bleeding billions every month like GM. No doubt I am glad to seem them have the same issues with selling inventory as GM, Ford, and Crapsler, but the problems we have at home are big ones compared to theirs. I wish this was not the case... but the problems with the big three run a lot deeper than a slump in sales. The slump just revealed the problems that were already there.

I just hope GM makes it and decreases the UAWs stranglehold on American vehicle (and aircraft) production.

dietz4ibanez · November 19, 2008

Toyota is DEAD!

merlin5577 · November 19, 2008

Even though we know our trucks are superior to Toyota's, I still respect Toyota as a company. They are very well managed and have implemented innovative processes into their supply chain to ensure quality and reliability. Personally, I find no happiness in the fact that they are feeling some financial pain from the industry in which they compete. They are a formidable competitor who should be respected, IMO.

F**K'em!!!

When Japan signs the NAFTA, then maybe I will consider it.

F**K YEAH! My thoughts exactly Jeff!

dietz4ibanez · November 19, 2008

wow

fbachman · November 19, 2008

Even though we know our trucks are superior to Toyota's, I still respect Toyota as a company. They are very well managed and have implemented innovative processes into their supply chain to ensure quality and reliability. Personally, I find no happiness in the fact that they are feeling some financial pain from the industry in which they compete. They are a formidable competitor who should be respected, IMO.

I'm kinda with ya there. DOn't like the products, but gotta respect the business model.

EIther way the knife cuts, it'll still be Americans losing jobs...

Schmids5.3l · November 19, 2008

That's awesome. A two day paid vacation. If they were union they would have picket signs and walk in circles like gay cheerleaders, just to make some dumb uneducated point.

thewaterboy · November 19, 2008

Even though we know our trucks are superior to Toyota's, I still respect Toyota as a company. They are very well managed and have implemented innovative processes into their supply chain to ensure quality and reliability. Personally, I find no happiness in the fact that they are feeling some financial pain from the industry in which they compete. They are a formidable competitor who should be respected, IMO.

F**K'em!!!

When Japan signs the NAFTA, then maybe I will consider it.

HawkeyeOC · November 19, 2008

That's awesome. A two day paid vacation. If they were union they would have picket signs and walk in circles like gay cheerleaders, just to make some dumb uneducated point.

Funny