Toyota idles all but one assembly line (in Japan)

[cwerdna]

Toyota idles nearly all assembly lines - Feb. 5, 2009

Toyota shuts down all but one assembly line


The automaker cuts production to meet falling global demand, trying to save jobs.

By CNN's Kyung Lah
Last Updated: February 5, 2009: 6:18 AM ET
TOYOTA CITY, Japan (CNN) -- On what was to be a historic day halting all of Toyota's Japanese assembly lines, the automaker announced late Thursday that it kept one line running.
The late news sent copy editors and reporters to their laptops erasing headlines like "historic shutdown," but it did little to quell the pain for the tens of the thousands of workers idled across Japan as nearly every Toyota line stopped producing autos and auto-related equipment.
Nowhere was the silence more deafening than in Toyota City, home and birthplace to Toyota Motor Corp. (TM). Factories were shuttered and workers idled in an attempt to bring production in line with falling global demand.
The day was particularly ominous for assembly line worker Takayuki Yoshikawa, who has already been told he's out of a job and back home in May. Yoshikawa lives in a Toyota-owned dormitory.
"I don't know what to do," said Yoshikawa. "I could go back to my hometown, but there are no jobs there, either."
Toyota, now the world's largest automaker, plans 10 more days like this, spread out over the next two months. Toyota's incoming president, Akio Toyoda, called the current economy "unprecedented, the likes of which haven't been seen in 100 years."
Toyota also said the scheduled assembly line shutdowns are an attempt to save what jobs the automaker can.
"The production suspensions scheduled for Japan in February and March are part of our effort to keep production in line with market demand," the company said. "We are carrying out these suspensions fully aware of the necessity to even out production volumes and maintain employment levels."
Analysts say while painful, these shutdowns may be unavoidable. "Everywhere, almost everywhere, things are getting worse and worse and worse," said Koji Endo, a Credit Suisse (CS) auto analyst. "Under that kind of circumstance, you have to control your cost. Maybe try to shrink temporarily."
The cost control is having a damaging effect on Toyota City public coffers. The city of 400,000, located about 150 miles southwest of Tokyo, estimates 90% of its tax dollars will evaporate as Toyota loses money and pays less corporate taxes.
It comes at a time when Toyota City is seeing historic levels of unemployment. This region, according to city hall, carries the dubious distinction of having the highest rate of unemployment in Japan.


At least it's not as bad as what Mitsubishi is doing w/their Illinois plant: http://www.autonews.com/article/2009...901270282/1176.

[Presto]

At least it's not as bad as what Mitsubishi is doing w/their Illinois plant: http://www.autonews.com/article/2009...901270282/1176.

Here's the article, for those that can't be bothered to register (gotta love google cache):

Mitsubishi extends Illinois plant shutdown


Chrissie Thompson
and Lindsay Chappell
Automotive News
January 27, 2009 - 1:12 pm ET

Mitsubishi Motors North America will extend the planned seven-week shutdown at its Illinois plant by five weeks, the company said today.


Mitsubishi will close its Normal plant for 12 weeks, from Feb. 16 to May 11, to reduce inventory, the automaker said in a release. The plant produces the Galant, Eclipse and Eclipse Spyder cars and the Endeavor crossover.


Mitsubishi began the year with a 148 days supply in the United States, the second highest of any automaker, up from a 127-day supply on Dec. 1. Jaguar Land Rover North America LLC had the highest days supply at 156. The industry averaged a 94-day supply Jan. 1. A supply that will last about 60 days is best, analysts say.
The decision marks the latest attempts by automakers to trim bulging inventories to levels corresponding to slumped demand.
Honda Motor Co. today cut North American and Japanese production by 50,000 vehicles, to 1.26 million units, for the fiscal year ending March 31. The new projection involves no job cuts but is 12 percent lower than the previous year and 13.9 percent lower than the automaker's initial forecast.


On Monday, GM said it would cut about 2,000 more production jobs and impose temporary shutdowns on about half of its 16 U.S. plants and one Canadian plant. The automaker already closed most of its U.S. plants for extended holidays. Some of those factories will not open until February.



Automakers are fighting sales rates that reached quarter-century lows at the end of 2008. Automakers sold 13.2 million light vehicles last year in the United States, the lowest total since 1992 and down from 16.2 million in 2007.



Mitsubishi sold 97,257 units last year in the United States, down 24.6 percent.

[nerfer]

So I wonder what's the lucky assembly line producing?

[bedrock8x]

Let me guess, Corollas and Matrix's.

Originally Posted by nerfer

So I wonder what's the lucky assembly line producing?

[Tideland Prius]

That bodyshell looks like a Raum.

[joe1347]

Interesting. I wonder if the slowdown is having a disproportionate affect on the primarily export driven economies (i.e, once US consumers stop buying, everyone in Asia is out of a Job). Didn't think that there would be an upside to outsourcing all of our manufacturing to Asia, but it certainly seems like layoffs would be even worse in the USA if we actually manufactured anything.

[malorn]

Originally Posted by joe1347

Interesting. I wonder if the slowdown is having a disproportionate affect on the primarily export driven economies (i.e, once US consumers stop buying, everyone in Asia is out of a Job). Didn't think that there would be an upside to outsourcing all of our manufacturing to Asia, but it certainly seems like layoffs would be even worse in the USA if we actually manufactured anything.

Wow that is a new economic theory, as long as you don't have a job you don't have to worry about losing it. Kind of like if you are already dead you don't have to worry about dying.

[patsparks]

I used to go in the swimming pool as a kid when it was raining on a hot day because you don't get wet from the rain if you're under water. Watched some great thunder storms from that pool.

[Ogo]

Originally Posted by joe1347

Interesting. I wonder if the slowdown is having a disproportionate affect on the primarily export driven economies (i.e, once US consumers stop buying, everyone in Asia is out of a Job). Didn't think that there would be an upside to outsourcing all of our manufacturing to Asia, but it certainly seems like layoffs would be even worse in the USA if we actually manufactured anything.

Actually the oposite is true. If you guys in USA would be manufacturing stuff, you would not have such big trade deficit and you would not need enormous loans to keep you alive and spending, so there would be no financial crisis of today as such.

This financial crisis is about making imbalanced world economy again balanced. Balanced in terms of trade deficits/surpluses and also balanced in terms of loans and savings.
So yes, the price will be paid not only by loan takers but also by loan givers and not just by those having trade deficits (like USA and most of Europe), but also those who had surpluses and are now unable to sell them anymore to other side (like China).

So basically it is quite complex issue. West should not spend so much anymore and invest in its own production, and East should work more on its own internal spending to level its production surpluses.

And biggest problem in this economic crisis are western governments. They lied, they mismanaged and they overspent for decades.

[hill]

Originally Posted by malorn

Wow that is a new economic theory, as long as you don't have a job you don't have to worry about losing it. Kind of like if you are already dead you don't have to worry about dying.

Well if it makes anyone feel any better, GM's in the process of slashing another 47,000 jobs here at home. Do you suppose any of THOSE 47,000 will be buying a new guzzlin' Chevy pickup (or any other new car) this year?