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Toyota takes further measures to reduce North American Production


ERLANGER, Ky. – Toyota is implementing additional measures at its North American manufacturing plants designed to further reduce production in the midst of the worst automotive slump in decades. The new actions are consistent with the company’s philosophy of making every effort to protect jobs during the sales downturn.

“We’ve taken responsible, step-by-step actions to address this issue in recent months, and we hope the new measures will help us adjust while protecting jobs,”
said Jim Wiseman, vice president of external affairs for Toyota Motor Engineering & Manufacturing North America (TEMA). “This philosophy of shared sacrifice is the best approach for us, and hopefully will make us a stronger company in the long term.”

In previous moves, TEMA:

* scheduled periodic non-production days as needed, but protected jobs by providing training and plant improvement activities;
* established a hiring freeze;
* eliminated overtime;
* suspended capital spending.

But the ongoing downturn necessitates additional steps:

* some additional non-production days in April, varying from plant to plant;
* strong possibility of reduced work/pay weeks, known as
“work sharing,” at some plants. Production team members at affected plants would work and be paid 72 hours instead of 80 during the
two-week pay period;
* executive and salaried bonuses eliminated;
* executive pay cuts;
* production team member bonuses reduced;
* voluntary exit program for team members who wish to pursue other opportunities;
* no wage increases for the foreseeable future.


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