Friday, April 29, 2011

Toyota Phils to cut production by half

MANILA, Philippines - Due to a prolonged shortage in supply of auto parts, Toyota Motor Philippines Corp. (TMP) is implementing an "adjustment plan" that would cut its production by half.

TMP has discussed with the Department of Trade and Industry the details of the plan, including reducing work days to just three a week over a period of two months.

Last week, TMP postponed production at its Sta. Rosa, Laguna facility.

A company insider said the three days a week production would cut TMP's output by half. Workers will also be asked to work on alternate shifts.

The official said TMP hopes to go back to regular operations early July as it expects suppliers in Japan to come on stream by then.

TMP officials are set to meet with the Department of Labor and Employment to discuss the impact of the production slowdown on workers.

TMP produces 120 units of Vios and Innova per day. Vios accounts for 60% of the product mix, while Innova, the remaining 40%.

A Reuters report Monday said the crisis in Japan slashed Toyota Motor Corp.'s output by almost two-thirds in March alone.

Toyota is the largest automotive brand in the Philippines. In 2010, it sold 56,855 units, capturing 33.7% of the market.

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