Erlanger, Kentucky – Toyota has cut production days at several North American plants over the new few months, in response to slow sales and high inventory levels.
On average, inventory ranges from 80 to 90 days. With the new production adjustments, the company hopes to reduce inventory by about half in the second quarter of the year.
“This is a tough environment, and it may continue for a while,” said Jim Wiseman, vice president of external affairs. “We are making responsible business decisions now in order to sustain our business over the long term. 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.”
Toyota’s plant in Cambridge, Ontario will be affected by the decision, with the Corolla/Matrix line reduced by 17 days from now until April 3, and the RX350 and RAV4 lines reduced by five days each in January. Other affected plants are in Kentucky, Indiana, California, and Texas, along with engine plants in West Virginia and Alabama, and a Camry assembly line within the Subaru assembly plant in Indiana.