Toyota to cut pickup, SUV production in US

19 June 2008 18:38  [Source: ICIS news]

HOUSTON (ICIS news)--Toyota shares fell on Thursday following news reports that the company said it was cutting production at three US plants amid a slump in large vehicle sales.

Automobiles are an important chemical end market, in that each has an average of $2,200 (€1,408) worth of chemistry, according to the American Chemistry Council (ACC). Automobile parts include rubber hoses, plastic dashboards, catalysts, fibres, adhesives and coatings.

Toyota shares traded at $101.33 at mid-day on the New York Stock Exchange, down $1.12.

A Toyota plant in San Antonio, Texas, that builds Tundra pickup trucks, will suspend operations for 14 days at the end of October. Some 200 temporary workers, or 10% of the San Antonio plant assembly line workforce, would lose their jobs, Toyota said, according to news reports.

A plant at Princeton, Indiana, that makes Tundra trucks and Sequoia sport utility vehicles (SUVs), will suspend production for six days by the end of August, according to news reports.

An engine plant in Alabama will close for five days by the start of August, according to reports.

The US market for pickup trucks and SUVs, which consume more fuel, has slumped amid skyrocketing gasoline prices.

Meanwhile, Ford announced this week that it has entered an agreement to export more than 30,000 North American-built vehicles to China starting in 2009. The deal was valued at more than $800m (€512m).

($1 = €0.64)

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