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Due to weak sales, it is reported that Toyota has stopped the operation of some aging production lines at its Tianjin plant.

2024-02-27 Update From: SLTechnology News&Howtos shulou NAV: SLTechnology News&Howtos > IT Information >

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Shulou(Shulou.com)12/24 Report--

CTOnews.com, December 4 (Xinhua)-- Toyota Motor Co., Ltd. announced on Saturday that it had stopped production at some of its plants in Tianjin, China, according to foreign media reports such as Reuters and Japan Newsletter.

It is said that this is the Toyota joint venture in China (CTOnews.com) part of the aging production line, while continuing to operate normally. A Toyota spokesman said by email that the suspension of production at the Tianjin production base, a joint venture with FAW of China, was a planned move and that Toyota was adjusting production according to changes in the composition of the model.

Toyota said, "the reason for stopping the production line is to optimize the production system taking into account the aging of the model and changes in the composition of the body type."

Toyota faces fierce competition in China, the world's largest car market, and the adjustment is in response to weak sales of fuel models, Japan's Newsletter said in a report on Friday.

According to CTOnews.com, FAW Toyota announced last month that it would continue to cut production in the next three months. Insiders responded that the move was based on the trend of the current market competition environment. "on the one hand, we face up to the real pressure on dealers in terms of capital, inventory, earnings, etc., and strive to ensure sales quality at the end of the year; on the other hand, on the basis of stabilizing this year's sales and reasonable profits, we can also adjust our posture for next year's sales rise."

Insiders also said at the time, "absolute inventory is not high, about 1.1 months, the highest inventory period in history (2014-2015) once reached 2.7 months, but the market price dip is too serious." the sales side tries to reduce the capital cost of dealers' inventory cars as much as possible to ease the pressure on dealers' income. "

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