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Toyota likely to slow production
Source: Agencies |
February 27, 2010, Saturday
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Toyota Motor Corp is likely to miss its February-April production target in North America by 20 percent due to slumping sales amid massive recalls, Japan's top business daily said yesterday.
Toyota will produce 350,000 vehicles in North America from February to April, down 20 percent from the auto maker's original target, the Nikkei business daily said, citing unnamed sources.
Toyota spokeswoman Ririko Takeuchi could not confirm the report, saying the company has not released latest production figures for the region.
The Nikkei said the world's biggest car maker has already told parts suppliers about the lower production. Toyota has recalled 8.5 million vehicles, more than 6 million of them in the United States -- the auto maker's biggest market -- battering its reputation for safety and quality.
Toyota President Akio Toyoda on Wednesday appeared before Congress and repeatedly apologized for safety problems that resulted in the recalls.
He visited the assembly line at the company's largest North American plant Thursday and met US Transportation Secretary Ray LaHood, repeating pledges to boost safety efforts.
To cope with falling sales following the recalls, Toyota said in late January it would halt production temporarily in San Antonio, Texas, and Georgetown, Kentucky, in March and April.
The Kentucky plant, which makes the Camry, Avalon and Venza vehicles, also planned to take a non-production day yesterday. The Texas plant makes the Tundra pickup truck.
Toyota already halted production of eight models covered by the US recall for five days in early February at four plants in the US and one in Canada.
Toyota's sales in the US tumbled 16 percent in January even though sales by most rivals rebounded.
"Investors already expected Toyota's US sales to fall sharply in the wake of the recall crisis. What we cannot predict here is how long falling sales will drag on," said Masatoshi Sato, analyst of Mizuho Investors Securities Co.
If slumping sales in the US continue, Toyota may have to suspend output in North America further and downgrade its worldwide production projection for this year, the Nikkei said.
Toyota will produce 350,000 vehicles in North America from February to April, down 20 percent from the auto maker's original target, the Nikkei business daily said, citing unnamed sources.
Toyota spokeswoman Ririko Takeuchi could not confirm the report, saying the company has not released latest production figures for the region.
The Nikkei said the world's biggest car maker has already told parts suppliers about the lower production. Toyota has recalled 8.5 million vehicles, more than 6 million of them in the United States -- the auto maker's biggest market -- battering its reputation for safety and quality.
Toyota President Akio Toyoda on Wednesday appeared before Congress and repeatedly apologized for safety problems that resulted in the recalls.
He visited the assembly line at the company's largest North American plant Thursday and met US Transportation Secretary Ray LaHood, repeating pledges to boost safety efforts.
To cope with falling sales following the recalls, Toyota said in late January it would halt production temporarily in San Antonio, Texas, and Georgetown, Kentucky, in March and April.
The Kentucky plant, which makes the Camry, Avalon and Venza vehicles, also planned to take a non-production day yesterday. The Texas plant makes the Tundra pickup truck.
Toyota already halted production of eight models covered by the US recall for five days in early February at four plants in the US and one in Canada.
Toyota's sales in the US tumbled 16 percent in January even though sales by most rivals rebounded.
"Investors already expected Toyota's US sales to fall sharply in the wake of the recall crisis. What we cannot predict here is how long falling sales will drag on," said Masatoshi Sato, analyst of Mizuho Investors Securities Co.
If slumping sales in the US continue, Toyota may have to suspend output in North America further and downgrade its worldwide production projection for this year, the Nikkei said.
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