Toyota to temporarily halt production in China plant

Toyota to temporarily halt production in China plant

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Japan based auto manufacturer Toyota, will temporarily halt production at its biggest assembly plant in China. Reports on October 16, 2012, said that the demand for the Japanese cars has been going down due to the bitter territorial row between Japan and China.

Toyota said that it will be suspending its production for a week, beginning October 22, 2012, at its Tianjin FAW plant in the country’s north-east. The auto manufacturing company had reclaimed its spot as the world’s biggest automaker in the first half of 2012.

The factory where production will be halted is one of nine plants in the country, and accounts for about 60% of China production for Toyota. A Tokyo based spokesperson declined to comment on the report and said, “production adjustments are part of the company’s normal practice and it does not disclose details of such adjustments.”

Moreover, other Japanese auto makers such as Nissan and Honda have cut their output in China, which is the world’s biggest vehicle market.  Sales in China have gown down drastically for all Japanese automobile manufacturers over the issue of the disputed islands, known as Senkaku in Japan and Diaoyu in China. The islands are rich in marine life and also have vast mineral reserves.