Toyota has scheduled additional non-production days at its eight North American manufacturing facilities over the next few months in response to high inventory levels caused by slow industry sales.
The number of non-production days varies by assembly line and model. The Toyota plant in Georgetown, Ky., produces the Camry and Avalon sedans and the company’s new crossover model, the Venza.
The production cuts in North America come on the heels of the company’s announcement that it would halt production for 11 days in February and March at its 12 plants in Japan.
On average, inventory of Toyota’s North American-built vehicles ranges from 80-90 days. With the new production adjustments, Toyota hopes to reduce inventory by about half in the second quarter of the year.
“In addition to slowing production we are redoubling efforts to cut costs at each of our facilities. Further actions and sacrifices may be necessary, but we will continue to do everything possible to assure the viability of our plants and protect the long-term employment security of our team members,” said Jim Wiseman, vice president of external affairs for Toyota Motor Engineering & Manufacturing North America (TEMA).
While Toyota sold more cars and trucks in 2008 than any other automaker, the company recently announced that it expects to post a loss for the fiscal year ending March 31, the first annual operating loss in 70 years.