Toyota Partially Shuts Down China Plant image

Toyota announced it will temporarily stop production at its Tianjin plant, China, due to low demand triggered by the tension between the two nations.

Toyota has previously announced it plans to halve China output in October to half compared with the same period last year. Now the company decided to make deeper cuts in the following months, beginning with idling production at its Tianjin facility, in China.

Beginning with October 22nd, two from the facility’s three lines will be shut down for one week, which will affect production of the Reiz and Crown sedans. The third line, which manufactures several models including the Vios subcompact, will also be shut down for two days between October 22nd and October 26th.

For September Toyota reported sales down 48.9% compared with the same period last year and Honda’s sales were down 40.5% due to the violent anti-Japan attacks and protests in China. Since the mid-September Chinese protests, Japanese showroom traffic and sales have dramatically decreased in the country.

As China is one of Toyota’s most important markets, a prolonged sales hit may affect the company’s profit forecasts. Because demand decreased over the past weeks, Toyota, Honda and Nissan have been forced to cut production, a move that could extend through November.