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Saturday 16 December 2017

Toyota halts UK, French output for 14 days

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

Makiko Kitamura and Cornelius Rahn

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

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.


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