Two of Japan’s biggest automakers are cutting production in some of their plants in order to stay financially afloat. Toyota Motor Company has recently slashed working schedules at 9 US and Canadian plants until April 2009. The company also plans to shed 5 000 temporary jobs in both US and its native Japan plants.
Japan’s number two Honda, is planning of sawing off 3 100 temporary jobs in Japan, while it freezes production at its plant in England for 35 days in April and in May. Nissan is slashing production by an extra 64 000 vehicles in Japan while Subaru and Yamaha are also slowing down production lines.
While it may appear to be all doom and gloom, no thanks to these negative reports, a lot of these automakers have actually been sitting on overcapacity for a few years now. That means they were producing cars they knew very well they couldn’t sell in the short-term. When the credit crunch hit us vehicles were parked in lots and sports fields, gathering dust and waiting for buyers to take them home.
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