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Toyota idles all but one assembly line (in Japan)

Discussion in 'Prius, Hybrid, EV and Alt-Fuel News' started by cwerdna, Feb 6, 2009.

  1. cwerdna

    cwerdna Senior Member

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

    Toyota shuts down all but one assembly line
    [​IMG]

    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/20090127/ANA02/901270282/1176.
     
    #1 cwerdna, Feb 6, 2009
  2. Presto

    Presto Has his homepage set to PC

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

     
    #2 Presto, Feb 6, 2009
  3. nerfer

    nerfer A young senior member

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    So I wonder what's the lucky assembly line producing?
     
    #3 nerfer, Feb 6, 2009
  4. bedrock8x

    bedrock8x Senior Member

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    Let me guess, Corollas and Matrix's.

     
    #4 bedrock8x, Feb 6, 2009
  5. Tideland Prius

    Tideland Prius Moderator of the North
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    That bodyshell looks like a Raum.
     
    #5 Tideland Prius, Feb 6, 2009
  6. joe1347

    joe1347 Active Member

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    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.
     
    #6 joe1347, Feb 6, 2009
  7. malorn

    malorn Senior Member

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    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.
     
    #7 malorn, Feb 7, 2009
  8. patsparks

    patsparks An Aussie perspective

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    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.
     
    #8 patsparks, Feb 7, 2009
  9. Ogo

    Ogo Prius Owner since 2008

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    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.
     
    #9 Ogo, Feb 7, 2009
  10. hill

    hill High Fiber Member

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    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?
     
    #10 hill, Feb 24, 2009
  11. jayman

    jayman Senior Member

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    No, but I'm sure GM will pony up for another few billion taxpayer dollars as a result
     
    #11 jayman, Feb 24, 2009
  12. ronhowell

    ronhowell Active Member

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    #12 ronhowell, Feb 24, 2009
  13. Mr.Vanvandenburg

    Mr.Vanvandenburg Senior Member

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    I actually bought a non China made product at WM, a 47 cent package of rubber bands with made in USA proudly emblazoned like it is a big deal. This is what it is coming down to.
    Those on government dole will be the only ones that can afford a new car.
    At least Toyota makes cars in the USA. The Ford Fusion is made in Mexico, among others.
    Maybe the whole thing is a Twilight Zone episode.
     
    #13 Mr.Vanvandenburg, Feb 24, 2009
  14. malorn

    malorn Senior Member

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    It is like a twilight zone episode. We can't figure out that imports are KILLING us. The 2 largest US ports, Los Angeles and Long Beach, number #1 import is cars(guess which brand?) and #1 export is recycled cardboard. Any wonder this country is broke? And we are worried about the Chinese declaring a trade war with us? How much worse could our trade situation with China get? Right now, we get $1 from them and we pay them $5. Kind of like playing the slots in Vegas.
     
    #14 malorn, Feb 25, 2009
  15. jayman

    jayman Senior Member

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    I liked your Vegas analogy, but lets take it a bit further

    It's like playing the tables in Vegas, except you're borrowing from the house to play. And a big guy with a name like Guido the Killer Pimp is watching your every move to make sure you don't try to sneak out after losing badly, as his job is to beat the s*** out of you in a back alley

    When you state that we "pay" them $5, what you really mean is that we BORROW around $2.50 off the Chinese, to "pay" them $5
     
    #15 jayman, Feb 25, 2009
  16. malorn

    malorn Senior Member

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    You are right, what a sad state of affairs. Time to work hard save some money, pay guido off and never go back to the casino.
     
    #16 malorn, Feb 25, 2009
  17. hill

    hill High Fiber Member

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    Well, Obama (last night's show) said that PHEV's ought to have American Made Batteries. Won't THAT put a big pinch in the Volt (if it ever makes it to market) ... after all, last I heard, was only giving a 50/50 chance to the American battery manufacturer. And suppose we DO start forcing on-shore manufacturing only. Who can afford a car if the manufacturer's employees are making a living wage here in the U.S.A. ??

    Save? But that's partly why we're in the toilet ... to much credit. A double edge sword.
     
    #17 hill, Feb 25, 2009
  18. jayman

    jayman Senior Member

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    Yes, the easy credit pushed us off the cliff
     
    #18 jayman, Feb 26, 2009
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