Leo Lewis, Asia Business Correspondent
Win tickets to the ATP finals
Toyota, the Japanese car giant, has been forced into suspending production at a number of factories in the face of chilling economic data, the strong yen and rapidly collapsing global car markets.
In a rare move which appears likely to be repeated in a similar form across much of the struggling Japanese automotive industry, the Nagoya-based giant said that all 12 of its Japanese manufacturing facilities would go dark for a total of 11 days between February and March.
By Toyota’s own admission, the move is designed to save permanent staff jobs amid fears that huge swathes of once booming industrial Japan are on the brink of turning very bleak indeed.
Industry insiders told The Times that 11 days – divided into two periods – represents effectively the longest time that a major car plant can be suspended: any longer, and the weight of fixed costs starts demanding permanent closures and more radical assaults on workforce numbers.
Toyota has already announced layoff plans that will hit its considerable staff of temporary workers, but in common with many large Japanese firms, the company has been desperate to avoid the social and political condemnation that would likely follow the announcement of big cuts among its permanent staff.
“Japan’s famous “job for life” corporate culture may have been eroded beyond recognition over the last few years, but none of the country’s biggest brand names wants to be the first one to permanently sound its death knell,” said one former senior executive of Mitsubishi Motors.
Toyota’s plant suspensions are also expected to send a nasty shudder throughout the local economy of Nagoya, where hundreds of car part and component makers have based their operations to be close to the world’s most successful car maker. The central Japanese city’s prosperity and importance as an export hub has been almost entirely driven by Toyota’s growth.
The Toyota factory suspensions come as inventories of unsold cars have built-up to unprecedented levels around the world: Japanese docksides are now jammed with vast expanses of unsold cars as demand slumps everywhere. Auto sales in the US plunged 36 per cent in the month of December despite ever more enticing incentives and purchase terms.
In Japan, meanwhile, car sales have fallen to their lowest levels since the early 1970s in a trend of decline that began well before the global economy tumbled into crisis.
Industry sectors news at a glance. Interactive heatmap, video and podcast
Everything the Business Traveller needs to know to make a better trip
Get ready for the winter sports season, with our resort guides and snow reports
We are backing British business, what is the confidence of the nation and what businesses are succeeding?
Growing demand for energy, oil that is harder to reach and the rise of carbon dioxide emissions. We examine the energy challenge
Enjoy further reading from Travel to Fashion, Business to Sport, discover more
Shortcuts to help you find sections and articles
36-month car lease
on contract hire for
£359.99 plus VAT pm
12 months for the price of 11 and a 5% discount.
Offer ends 31/11/09
The UK's leading alternative to showroom finance.
Finance packages tailored to your needs.
Minimum loan of £15,000
Car Insurance
c£100,000 + car, bonus & bens
Lord Search & Selection
Midlands
Competitive
Barclaycard
Competitive
EVERSHEDS
London and Manchester
£80-95,000
Clay McGuire Executive Selection
Moments from Battersea Park.
For sale with Winkworth.
See your free Experian credit report beforehand
Book now & save over £100pp.
11 cool resorts, lowest prices... Early Booking offers 15 Nov.
20% off selected Azores holidays taken in October with Sunvil Discovery
Get covered on your travels with a superb range of policies at great prices. Visit InsureandGo.com
World Class Golf, Spa and preferential Beach Club. Private estate overlooking West Coast
Villas from £275 per night inclusive of Golf
Contact our advertising team for advertising and sponsorship in Times Online, The Times and The Sunday Times, or place your advertisement.
Times Online Services: Dating | Jobs | Property Search | Used Cars | Holidays | Births, Marriages, Deaths | Subscriptions | E-paper
News International associated websites: Globrix Property Search | Milkround
Copyright 2009 Times Newspapers Ltd.
This service is provided on Times Newspapers' standard Terms and Conditions. Please read our Privacy Policy.To inquire about a licence to reproduce material from Times Online, The Times or The Sunday Times, click here.This website is published by a member of the News International Group. News International Limited, 1 Virginia St, London E98 1XY, is the holding company for the News International group and is registered in England No 81701. VAT number GB 243 8054 69.