Toyota Takes Further Measures To Reduce North American Production

[Purveyor]

Source: PRNewswire via COMTEX/

Last update: 7:00 p.m. EST Feb. 12, 2009

ERLANGER, Ky., Feb 12, 2009 /PRNewswire via COMTEX/ -- 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.





Read more: http://www.marketwatch.com/news/story/toyota-takes-further-measures-reduce/story.aspx?guid={12AD6324-6D23-4F59-ACFF-4BB4E23DE580}&dist=msr_2

[fujiyama]

1. I like that they eliminate executive and salaried bonuses

Let's see an American company do that....Yeah right. That will never happen.

[trekbiker]

2. UAW workers should be so lucky...

Toyota has always had superior management

[DainBramaged]

8. Yup, of course they have, you being such an authority on the car business

What was that about bicycles???? :eyes:

[DollyM]

3. Our little Toyota Tercel is 17 years old . . .

and still purrs like a kitten. It has been passed down to our 19 year old son. Maybe they need to start making crappy cars that don't last so they can sell more! :)

[DainBramaged]

7. That's a back-hannded insult to those of us who are UAW members

I love how you love Union labor. Fraud.

[DollyM]

9. oh lighten up!

I have a Ford van that is 14 years old too. There, feel better?

[DainBramaged]

10. No, you don't get off insulting the UAW here

[DollyM]

11. I am not sure how you came to that conclusion . . .

You need to not take things so personally. I was making a comment about our Toyota and how dependable it was. I also told you we had a 14 year old Ford that was also very dependable. I don't know how you can get insulted over that. Seriously, chill out, dude!

[DainBramaged]

4. Toyota moves deeper into U.S. work cuts

Source: Automotive News (subscription only)

Toyota Motor Corp. said Thursday night it is freezing wages, reducing hours and adopting a voluntary exit program across its North American manufacturing operations.

The new measures, which Toyota dubbed a "shared sacrifice" philosophy, come as the automaker faces its first financial losses since 1950 and seeks some $5.5 billion in global cost reductions.

The immediate pinch will hit Toyota's North American managers. They will lose bonuses this year and see their total compensation reduced by about 30 percent.

Toyota is moving deeper into unfamiliar waters as it responds to industry problems of declining sales and idle factory lines.

Toyota's North American factories built 55,195 cars and trucks in the first five weeks of this year. In a similar period one year ago, the factories built 136,053 vehicles -- a decline of 59 percent. Production for the North American industry as a whole declined 62 percent for the period.

As industry capacity problems worsened over the past several years, Toyota has attempted to avoid lay-offs among its mostly non-union North American workers. Despite production halts at most of its plants here, Toyota has employed its workers to undergo retraining, improve factory environments and perform community services.

But a statement released by Toyota Motor Engineering & Manufacturing North America Inc., the company's U.S. manufacturing headquarters, said there is now a "strong possibility" that it will reduce work and pay at some plants.

Toyota is considering a schedule in which some workers would work 72 hours in a typical 80-hour, two-week period.


Read more: http://www.autonews.com/apps/pbcs.dll/article?AID=/20090213/ANA02/902120276/1176

---

Toyota says it will also:

• Add three to eight additional non-production days per factory to its North American schedule through April 30;

• Reduce bonuses for hourly workers;

• Eliminate bonuses for North American executive and salaried workers; and

• Offer no wage increases "for the foreseeable future."

The company will also offer a "voluntary exit program" for workers who want to leave. That plan will provide 10 weeks of pay, two weeks of compensation for every year an employee has worked, and a $20,000 lump payment to any worker who wants to leave.

Spokesman Mike Goss said Toyota has no target to reduce headcount and does not expect many of its employees to leave.

Goss also said that the elimination of executive and salaried bonuses represents about a 30 percent reduction in total compensation of the affected personnel.

"We're trying our best to keep everyone employed," Goss said. "We feel that with the reduced work weeks and bonus eliminations, we're getting into the position we need to be in."

[Grins]

5. Whatever you do....

"I wouldn't loan them any money. They're either failed or failing." - Repug Sen. Richard Shelby, (R-Evolting)

Maybe Senator Corker (R-Hypocrite) will insist that Toyota workers bear more of the cost of the plant’s survival and offer to lower their wages even more? Reasonable enough; that’s what he wanted the UAW to do.

If they don’t, can it then be said, “It sounds like the (Toyota workers) blew up the deal”?

[madrchsod]

6. pay chinese wages and everything will be fine