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Wednesday 22 February 2017

Toyota halts UK, French output for 14 days

Makiko Kitamura and Cornelius Rahn

Published 26/03/2010 | 12:17

Toyota: Sales dip forces production cuts
Toyota: Sales dip forces production cuts

Carmaker Toyota will deepen production cuts in Britain and France as government sales incentives expire.

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The Japanese company, which has also been hurt by the recall of more than 8 million vehicles, will halt assembly of the Yaris subcompact in Valenciennes, north of Paris, for 14 days in a series of stoppages starting next month.

Daily output will be cut by 22pc to 651 cars from May 10.

A plant in Burnaston, England, that makes the Auris hatchback will close for a week in May and one of its two production lines will be idled at the start of June, Toyota spokeswoman Maria Mack said today.

Cash-for-clunkers payments ended in September in Germany and will cease in the UK this month, while a French bonus will be halved to €500.

Toyota is also revamping its quality control after the recall over accelerator and brake issues.

February sales fell 20pc in Europe from a year earlier, versus a 3.2pc gain for the overall market.

Toyota’s production cuts follow other measures announced earlier this year. Yaris output in France was reduced to 840 a day from 1,000 on February 17 and the Burnaston factory will shut down over the coming two weeks.

While the Japanese carmaker has no plans to cut its 3,000 full-time posts in France, the contracts of 345 temporary workers hired last year won’t be renewed, Mack said. In the UK, 750 jobs are to go through voluntary departures.

Bloomberg

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