Toyota suspends some Tianjin operations after reporting poor sales – Reuters
© Reuters. File photo: Tianjin Faw Toyota Motor Co., a joint venture between China’s Tianjin FAW Xiali Automobile Co Ltd and Japanese automaker Toyota Motor Corp, in central Beijing, Oct. 9, 2012. You will see a sign outside the Ltd showroom. REUTERS/David Gray/File photo
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SHENZHEN, China (Reuters) – Toyota Motor Corp has halted production at some of its aging lines at its Chinese joint venture, while operations are proceeding normally, the Japanese automaker said on Saturday after media reports it was partially halting production due to sluggish sales.
The suspension of production at the Tianjin joint venture with China’s FAW was a planned measure. toyota (NYSE:) is adjusting production in response to “changes in vehicle model configurations,” a spokesperson said in an email.
He continued, “The reason for discontinuing the production line is to optimize the production system in consideration of changes in vehicle composition such as aging and body type.”
Japan’s Jjiji news agency reported Friday that the world’s largest automaker by sales has halted some production as part of a major production adjustment in response to sluggish sales of gasoline-engine cars.
FAW officials did not respond to requests for comment.
Reuters reported last month that Toyota told dealers it would extend its plans to reduce production at FAW Ventures.
Slowing sales pose a growing challenge for Toyota in China, which accounted for nearly a fifth of Toyota’s global sales of about 8.5 million vehicles in the first 10 months of the year, including sales of the luxury Lexus brand.
