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Tuesday, January 20, 2009

Number one carmaker Toyota shedding temporary jobs

For the last three years, we have seen many news about the competition between Toyota Motor Corporation (TYO:7203) and General Motors Corporation (NYSE:GM)  for becoming the leading automaker in the world. GM had traditionally positioned itself as the top automaker in USA but in 2008, it was like the year of Toyota and Toyota achieved good success but then came the great economic recession. GM is now struggling a lot and even we have seen talks of GM getting bankrupted. The only good thing perhaps for Toyota is that their condition did not reach so bad and they are still doing ok. However, economic condition is not good in the markets of Toyota like Japan and USA and even in Asian countries like China and India fewer people are willing to spend to buy car. So, it is becoming a big problem for carmakers as in the time of economic recession the car companies suffer perhaps the worst way. Toyota is now going to shed 3000 temporary workers and the company is not going to take any new temporary workers at this moment. This is bad news for Japanese economy because many Japanese people consider Toyota as an indication of their national economic status.

 

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AFP

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