GAC Toyota to cut '09 output by 10% amid crisis

Shanghai, December 8 (Gasgoo.com) Amid the global financial crisis, Toyota Motor also has to slow its pace. GAC Toyota Motor Co, a joint venture between Guangzhou Auto and Toyota Motor, is expected to cut production in 2009 by 10% to weather the auto market slump, though its Camry model has seen steady sales growth, said carschina.com today citing.

Toyota will open the second production line at its venture in Guangzhou in the middle of 2009, as planned, said Feng Xingya, executive vice president of GAC Toyota. But as the macro-economic environment is changing drastically, it is necessary for GAC Toyota to adjust its output to the sliding market demand, which is a usual result of so many year of boom.

GAC Toyota (formerly named Guangzhou Toyota) is a 'speed miracle worker' by producing and selling 200,000 units of its new Camry model in one year and a half and making profits of the model within one year of its launch. And this year the Camry model's speed has not slowed down: in the first ten months, the sold and registered Camry cars reached 120,000 units, and the 2009 edition Camry sold 120,000 units in October after its launch in September.

In contrast, the sales of the venture's new Yaris model are far from satisfactory. From June (when it went on sale) to October, the new Yaris only sold 16,000 units, with the monthly average sales of 3,200 units too much below the expected level. As a result, the mystical halo around GAC Toyota's speed sales performance has gradually faded out.

"In the future, we'll deal consider the company's output and sales with great caution," Feng said. "During the crisis period it will be more important for the venture to focus on quality control, consumer satisfaction, network development and dealers' benefit," as these will pave the way for better sales in the days ahead.