Toyota Stops Production in China Next Month image

Toyota announced it will halt production in China in October due to the China-Japan conflict.

As the situation is still tensioned in China, Toyota said it will review its decision after the protesters calm down. The automaker will offer Chinese employees minimum levels of work to maintain employment and it will also stop all exports from Japan to China, including the Lexus models. Toyota has set its October production plans and profit in China at 0.

In 2011 Toyota exported in China in October 78,000 units and production in this country reached 800,000 vehicles last year, selling a total of 880,000 cars in the Chinese market. Toyota also halted production taking into account the possibility of a delay in the parts supply from Japan, as the Chinese customs checks have become tightened. The automaker has sold 53,000 Lexus vehicles in 2011 in China, most of them produced by Toyota Motor Kyushu.

The automaker also plans next month to adjust inventory in China, taking into consideration that the country’s market is slowing. But Toyota’s production is also affected in Japan, where the company announced it will cut production at Toyota Kyushu, the automaker’s subsidiary.