Toyota Motor Corp. announced today that it will be further cutting North American production, reducing executive compensation and will offer buyouts to some 18,000 workers. The move comes as Toyota reacts to a sluggish U.S. auto market.
Toyota said that it will cut production at some U.S. plants in April from two to eight days depending on the amount of inventory at a particular plant. The Japanese automaker will also introduce shorter work weeks at some U.S. plants. Those affected by the shorter work weeks will work eight hours less per every two-week period and will also take a pay cut.
Toyota said that unionized plants in the U.S. and Mexico will not be affected by the move. The automaker will also offer buyouts which will not be open to Canadian plants or unionized plants in the U.S. and Mexico. The buyouts will include 10 weeks of pay, two weeks of pay for every year of service and $20,000.
Toyota said that there will be a 30 percent cut in executive compensation, 5 percent of which will be a salary cut. The company will also cut salary increases for the “foreseeable future.”
Source: Detroit News