Toyota will suspend production of its Yaris subcompact in France for four days as European governments cut sales incentives.
The company will halt production from April 6th through April 9th and may add further suspensions, spokesman Etienne Plas said today. While Toyota isn't laying off full-time employees, temporary workers hired at the end of last year won't have their contracts renewed, he said.
The French government's €1,000 trade-in bonus, introduced last year, was cut to €700 on January 1st and will fall to €500 in the second half of the year. A more generous German program ended in September and the UK's "scrappage" payments are set to end this month.
European car-sales growth slowed to 3.2 per cent last month from 13 per cent in January.
The Toyota City, Japan-based company said last month it was reducing Yaris production to 840 units a day from 1,000. Daily output may now fall further, to 651 units, Mr Plas said.
Meanwhile, the company is also preparing for a two-week shutdown at its plant at Burnaston in Derbyshire.
First announced last month, the shutdown will cover the next two weeks, with production recommencing on April 12th. Toyota UK said today that the Burnaston shutdown was to enable the plant to prepare for manufacturing of the new hybrid Auris model.
Agencies