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Monday, February 16, 2009

Toyota to Reduce Domestic Production by 54% in January-March Quarter

Global car maker Toyota Motor Corp. is going to reduce its domestic production by 54 percent in the ongoing quarter, ending this March. Such a huge slash in production is because of large drop in demand both in Japan as well as in the US. World car market is now stumbling due to global economic downturn. Toyota has also predicted its first ever yearly operating loss in 70 years. Toyota’s production in the current quarter will be reduced to 519,000 volumes, compared to 1.13 million volumes in the same period of last year.

It is not only Toyota, but also almost all the car makers are finding it pretty tough to cope up with the ever-worsening economic recession. Surviving in the market has become a big challenge for some big companies like General Motors. The situation got aggravated for the companies like Toyota as they saw an extensive drop in the demand of hybrid cars too in the recent months, because people are now less interested to hybrid cars as global fuel price got decreased significantly.

Related article:

Bloomberg

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