Monday 19 March 2018

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.


Business Newsletter

Read the leading stories from the world of Business.

Also in Business