Toyota's U.S. plans shift with the times

Published: Dec. 23, 2008 at 7:51 AM

SAN ANTONIO, Dec. 23 (UPI) -- Slumping sales have drastically shifted Toyota Motor Corp.'s plans for U.S. production, leaving workers wondering when layoffs will start, observers said.

Even Toyota, considered a decisive planner, cannot escape the simple math as U.S. auto sales have trimmed back from a norm of about 16 million a year to less than 12 million, the sales figure projected for 2009, The New York Times reported Tuesday.

Workers at Toyota's San Antonio plant have been splitting their work hours between training, working and doing volunteer work, as the company has sidestepped layoffs for the bulk of its workforce -- laying off only temporary workers so far.

But, sales of the Texas-made Tundra trucks fell by 50,000 January through November and fell more than 50 percent in November from a year ago.

Consequently, Toyota pulled away from plans to make the truck at two plants and switched plans for a new plant in Tupelo, Miss., from Highlander to Prius production. Then, last week, it decided to hold off on completing construction of the Mississippi plant indefinitely.

"I see buyouts coming," auto consultant Maryann Keller told the Times. "Training people who don't need to be trained is Toyota's job bank."

© 2008 United Press International, Inc. All Rights Reserved.
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