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Toyota production remains scaled down

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Posted: Thursday, January 15, 2009 12:00 am | Updated: .

andrea@pdclarion.com

PRINCETON-Gibson County's Toyota plant is scheduling 30 non-production days on the Sienna mini-van line the first quarter of this year in reaction to market demands, and plans 17 non-production days on the Sequoia SUV line in March to allow retooling for the new Highlander SUV scheduled to roll off the assembly line late this year.

Toyota Motor Manufacturing Indiana spokesman Kelly Dillon said employees were updated on the production plans Thursday as part of the company's monthly review of production needs.

The update came as Toyota confirmed plans to scale back production at several North American plants.

On average, inventory of Toyota's North American built vehicles ranges from 80-90 days. With the new production adjustments, Toyota hopes to reduce inventory by about half in the second quarter of the year, the company said in a news release Thursday evening.

"This is a tough environment, and it may continue for a while. We are making responsible business decisions now in order to sustain our business over the long term," said Jim Wiseman, vice president of external affairs for Toyota Motor Engineering & Manufacturing North America (TEMA). "In addition to slowing production we are redoubling efforts to cut costs at each of our facilities. Further actions and sacrifices may be necessary, but we will continue to do everything possible to assure the viability of our plants and protect the long term employment security of our team members."

Late last year TMMI confirmed plans to cut Sienna production by 50 percent beginning in January. The latest adjustment at the Gibson County plant schedules nine days idle on the Sienna line in January, eight in February and 13 from March to April 3.

The Sequoia line resumed production in November but not at full scale. Dillon said the plant will use 17 days in March to retool the Sequoia line for production of the Highlander SUV.

Wiseman reported Toyota's Subaru Indiana plant, which produces the Camry, planned four idle days in January.

Cutbacks in production were also planned in Kentucky, California, West Virginia, Alabama and Texas. In San Antonio, where the Gibson County-born Tundra pickup is now manufactured, three non-production days are scheduled in March, and the Tundra will be produced with the equivalent of one shift until the market improves, the company reported.

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