Business World

Monday 21 August 2017

Toyota halts French Yaris production for 4 days

Makiko Kitamura

Carmaker Toyota will suspend production of its Yaris subcompact in France for four days as European governments cut sales incentives.

The company will halt production from April 6 through April 9 and may add further suspensions, spokesman Etienne Plas said by phone today, confirming a Kyodo News report.

While Toyota isn’t laying off full-time employees, temporary workers hired at the end of last year won’t have their contracts renewed, he said.

The French government’s €1,000 trade-in bonus, introduced last year, was cut to €700 on January 1 and will fall to €500 in the second half of the year.

A more generous German program ended in September and the UK’s “scrappage” payments are set to end this month.

European car-sales growth slowed to 3.2pc last month from 13pc in January.

The Toyota City, Japan-based company said last month it was reducing Yaris production to 840 units a day from 1,000. Daily output may now fall further, to 651 units, Plas said.

Toyota gained 1.5pc today to 3760 yen per share in Tokyo trading.

Bloomberg

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