Toyota Motors Kyushu, based in Miyawaka, Fukuoka Prefecture, is projecting an operating loss of more than 10 billion yen for the current fiscal year due to large production cutbacks stemming from the downturn in the North American market. In addition to freezing plans for a production increase, the company will not renew the contracts of an additional 850 seconded employees. They were forced to reexamine their aggressive plans to boost production because of a drastic change in the business environment. Declining sales and the burden of depreciation expenses and selling, general, and administrative expenses for surplus personnel had a direct impact on profitability.
- Local News
- Toyota Kyushu Expects 10 Billion Yen Loss