Toyota Slows Production in Europe as Sales Lag
March 26, 2010
TOKYO — Toyota Motor said Friday that it would idle three plants in France and Britain for a total of 14 days to reduce inventory amid recent recalls and a slump in European sales.
The company, which was the world’s biggest automaker by sales last year, will suspend output for four days in early April at its factory in Valenciennes, France, and for five days in May at its Burnaston and Deeside factories in Britain, according to a Toyota spokeswoman, Ririko Takeuchi.
Toyota also plans to halt one of the two assembly lines at Burnaston for five days in early June, Ms. Takeuchi said.
The production halt comes after Toyota recalled 8.5 million vehicles worldwide over gas pedals that could stick or get caught under floor mats. Toyota has also recalled the latest model of its flagship Prius gas-electric hybrid car, as well as several other hybrid models, because of braking problems.
The automaker is halting production in France because of a slowdown in sales after the recalls, Ms. Takeuchi said. Plans for the closures in Britain predated the recalls and came amid lackluster sales in Europe in the aftermath of the global economic crisis.
Sales have slowed across the Continent as cash-for-clunkers programs have expired in several European countries. But the flurry of recalls have hurt Toyota’s reputation for quality as well.
Toyota sales in the European Union fell 20 percent in February from a year earlier, even though overall car sales rose 3 percent in the 16 countries that use the euro. In the United States, Toyota’s sales fell 9 percent in February from the previous year.
The Toyota president, Akio Toyoda, testified in Washington before a Congressional committee last month over the company’s handling of the recalls, which has been criticized as slow and insufficient. In Washington and elsewhere, Mr. Toyoda has promised to bolster quality controls at the automaker.
In February, Toyota said that it would form a global quality review committee to oversee quality and safety issues, and to ensure that recalls were carried out swiftly. The committee meets for the first time next week at Toyota’s headquarters in Nagoya, Japan.
Toyota said this week that it would review its production setup in Japan to stem looming losses. nytimes.com |
