Toyota factory shutdown in the planning
Toyota, currently, the world’s largest automaker, is planning to shut down all of its factories in Japan for 11 days between February and March.
Lack of orders from local and overseas has piled up the company’s inventories, and the next sensible thing to do is to follow other players in all other industries – shutting down plants.
Next month, all of the company’s 12 plants will be shut down for 6 days, while the remaining 5 days are allocated for March. The factories affected are 4 vehicle assembly plants, and the remaining are manufacturers of parts including transmissions and engines.
Few months ago, Toyota was seen as one of the ‘big guys’ which would be able to withstand the global economic pressure, but that does not seem to be the case now.
The company is struggling to cope with the economic uncertainty that has brought down its vehicle sales globally. Sales in the United States dropped close to 40%, a record worse than its competitors including Honda, Nissan, General Motors and Ford. Toyota’s advantage lies in its ability to produce fuel-efficient cars but that has not been able to lure enough buyers as the financial turmoil was spreading epidemically throughout the world.
Last month, it recoded its first ever losses in 40 years of operation and had earlier announced a 3-day shut down for the same batch of factories.
To date, Toyota has not announced major layoffs or job losses, but people are waiting if such news would eventually come.