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Toyota Further Reduces North American Production

February 16, 2009

ERLANGER, KY – Toyota is taking 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.

Toyota Motor Engineer & Manufacturing North America (TEMA) has already scheduled periodic non-production days as needed, established a hiring freeze, eliminated overtime, and suspended capital spending.

To cut costs even further without resorting to layoffs, TEMA will increase non-production days in April, varying from plant to plant, and possibly even reduce 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.

In addition, other measures taken would include:

  • Elimination of executive and salaried bonuses.
  • 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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