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Toyota to reduce stockpile of unsold cars

  •  30 March 2009
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Toyota will aim to boost its domestic Japanese production after reducing its stockpile of unsold cars despite uncertainty in the auto market.

Japan's leading automaker has idled plants and laid off workers to cope with the global economic crisis which has sent demand for cars plummeting.

"From May onwards we hope there will be no suspension in operations," president Katsuaki Watanabe told reporters at a new model launch.

Watanabe said the group aims to boost domestic production to 10,000 vehicles a day after shaving bloated inventories however he acknowledged it was impossible to estimate the outlook for the market.

The May production target is 22 per cent higher than Toyota's February output but down 44 per cent from March 2008 before Japan slipped into recession, according to Toyota.

Auto sales in Japan are expected to slump to the lowest level in 32 years in the next business year from April.

Toyota ended the 77-year reign of General Motors as the world's top-selling automotive manufacturer in 2008 following several years of strong growth thanks to brisk demand overseas, particularly in the US.

But it has been hit hard by a slump in exports and has slashed thousands of temporary jobs as it braces for an operating loss of Y450 billion ($A6.6 billion) yen in the financial year ending March.

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