Toyota plans production cuts

Japanese car giant Toyota is planning to cut production at its UK factories in a fresh move to reduce costs in the face of falling sales, it was learned today.

The firm is set to announce on Wednesday whether it will introduce a shorter working week or a temporary shutdown of its sites at Burnaston, near Derby, and Deeside in North Wales.

A company spokesman said: “We have to reduce our costs further. Our employees recognise that and we are seeking agreement with the unions.”

The company, which employs 3,900 workers at Burnaston and 570 at Deeside, has already cut 200 temporary jobs and opened a voluntary redundancy scheme last week.

Toyota has also scrapped the annual pay increase for employees and cancelled management bonuses, while both factories have just finished a fortnight’s shutdown. The new cuts are in addition to these measures.

The plant in Burnaston makes the Avensis and Auris models, with 85% of output exported. The firm’s European sales were down by 10% last year.