China’s Tianjin FAW Toyota Motor to halt production from 22 Oct
17 October 2012 08:44 [Source: ICIS news]
SINGAPORE (ICIS)--?xml:namespace>China’s Tianjin FAW Toyota Motor will take two of its production lines at Tianjin in China off line from 22–26 October, a source close to the carmaker said on Wednesday.
"The company plans to shut two production lines as a result of falling sales. The weak demand is impacted by the territorial dispute of Diaoyu Islands," the source said.
"Japan's move to nationalise the islands has a negative impact on the Chinese car market. The sales of other Japanese-brand car producers, including Honda Motor, have also declined sharply,” the source added.
Toyota owns three production lines in Tianjin and has around 12,000 employers working at the site. The source did not disclose the capacity of the production lines.
The car manufacturer also plans to adjust their production volumes at its other factories in China according to the market demand, the source said.
Toyota in September sold around 30,000 cars in the Chinese market, which is a 48.9% drop year on year. The sales figure is also nearly 20,000 cars fewer compared with its target of 50,000 cars for September, a source close to the carmaker said.
Toyota produced 500,000 cars in 2011, the source added.
While the automotive industry is a major end-user of petrochemicals, including styrene butadiene rubber (SBR) and plastics, the reduced production volumes will have little impact on Tianjin’s SBR market, because of the weak market sentiment, a trader said.
Tianjin FAW Toyota Motor is a 50:50 joint venture between China’s FAW Group and Japan’s Toyota Motor Corporation.By: Viola Pan+65 6780 4359
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