Toyota Announces North American Wide Plant Shutdowns

TOYOTA TO CLOSE ALL NORTH AMERICAN PLANTS FOR 2 DAYS
According to a company spokesperson, Toyota Manufacturing is apparently grappling with the effects of the economic decline and has announced that effective Dec 22/23 that all of its’ North American plants will close on top of their scheduled Christmas holidays as a result of globally falling sales.
Recent sales forecasts for the worlds’ largest automaker in China have fallen by more than 100,000 vehicles on gross vehicle sales projections of 700,000 vehicles per year. In the North American market, Toyota sales have dropped more than 12% in the US market, while sales of all light trucks and vans have dropped off the map. Production for trucks was suspended for three months in the USA through the summer and will be reduced even further (according to a spokeswoman) in 2009 at three U.S. assembly plants.
It is unclear at this point if Toyota Manufacturings new assembly plant in Woodstock will be adversely affected permanently as well, but considering the state of vehicle sales and consumer confidence levels in North America we can only assume the worst is yet to come.
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6 Comments

  1. Anonymous
    Posted November 19, 2008 at 4:36 pm | Permalink

    “we can only assume the worst is yet to come.”

    The biggest problem we have is a lack of consumer and investor confidence. Comments like the above from you and the MSM are not exactly contributing to a solution. Like most crises this one owes as much to overblown hype from the MSM as it does to any concrete economic causes.

    A little optimism goes a long way.

  2. FredM
    Posted November 19, 2008 at 9:08 pm | Permalink

    I did a search and cant find any web site accept yours saying this

    “Toyota Manufacturing is apparently grappling with the effects of the economic decline and has announced that effective Dec 22/23 that all of its’ North American plants will close on top of their scheduled Christmas holidays as a result of globally falling sales.”

    Not saying it isn’t true, just trying to find a source. Do you have a source for this statement?

  3. jim bender
    Posted November 19, 2008 at 9:14 pm | Permalink

    “Like most crises this one owes as much to overblown hype from the MSM as it does to any concrete economic causes.”

    I beg to differ. The most obvious problem is greed + exorbitant wages at the executive level, and the gross misuse of consumer credit that is abnormally expensive. Canadians are suffering the results of 10 years of binge buying on plastic.
    Oh yes, and Canada does suffer a sub prime problem just as the USA is experiencing…here we call it no money down. The implications are the same for the financial sector, hence the governmental purchase of billions in CMHC mortgages and unsecured debt.
    I will agree that people need to continue to spend, but not borrow heavily if avoidable.That means don’t use credit cards.
    It’s a good time for buyers as it certainly is a buyers marketplace, but for the average guy on the street, there will be pain as they are the first to go when layoffs are announced, and the last to be rehired when the work comes back.(executives always get in first…and leave last)
    It’s always the average guy that gets the crap kicked out of him in this kind of downturn.

  4. jim bender
    Posted November 19, 2008 at 9:15 pm | Permalink

    Ps…See todays financial post….
    and some other stuff on the AP wire service…

  5. Anonymous
    Posted November 19, 2008 at 9:36 pm | Permalink

    “The most obvious problem is greed + exorbitant wages at the executive level, and the gross misuse of consumer credit that is abnormally expensive.”

    All true but if you rolled those exorbitant executive wages back into companies like GM and Ford things wouldn’t be all that much different.

    The greed applies to all levels. Let’s not let the unions off the hook.

  6. Mr. Awesome
    Posted November 20, 2008 at 4:12 pm | Permalink

    A huge factor in the decline of the automotive industry lately has not only been the failing economy, but skyrocketing oil prices, sending gas up to $1.35/litre, and in some parts of Canada, as much as $1.50/litre. The economy will still be rocky for a while, but if the United States can avoid a recession, oil prices will continue to drop as the economic recovery is going on – there will be a huge dip in the market, killing demand and pulling prices down even more. Because of the decline in car sales, prices are coming down, as well. Once the economy is a little more stable, we’ll see a strong increase again in auto sales, which will reflect cheaper gas prices and a stronger economy. And then the gas will start to go up again…


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