SHENZHEN, CHINA, Dec. 2 (Reuters) – Toyota Motor Corporation (7203.T) has halted production on some aging lines at its Chinese joint venture while continuing production as usual, according to media reports. It was announced on Saturday. Production stopped due to poor sales.
The suspension of production at the Tianjin joint venture with China FAW is a planned move, and Toyota is adjusting production based on “changes in vehicle mix,” a spokesperson said in an email.
“The reason for the production line suspension is to optimize the production system in consideration of aging and changes in vehicle model composition such as body type.”
Japan’s Jiji Press reported Friday that the world’s largest automaker by sales will suspend some production as part of a major production adjustment following sluggish sales of gasoline-powered cars.
FAW representatives did not respond to requests for comment.
Reuters reported last month that Toyota informed dealers that it would extend FAW’s production cut plan.
The slowdown in sales in China, which accounted for nearly one-fifth of Toyota’s global sales of about 8.5 million vehicles in the first 10 months of this year, including sales of its luxury brand Lexus, is becoming an increasing challenge for Toyota.
Reporting by David Kirton in Shenzhen and Brenda Go in Shanghai
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