Illustrating just how bad global auto sales are, Toyota announced on Tuesday that it will be slashing bonuses and idling more production plants. Japan’s largest automaker will be cutting management bonuses for nearly 5,000 employees by 10 percent, while also slowing the production of Lexus vehicles.
Toyota cited a dramatic drop off in sales for both measures.
According to Automotive News, Toyota will idle one of its three assembly lines at its Tahara plant in Japan for two days, wiping about 5,000 vehicles from the plant’s production schedule. The Tahara plant produces the Lexus LS, GS and IS models.
In addition to the Tahara plant, another Lexus plant in southern Japan — operated by a subsidiary — will also halt production for two days this month.
Overall, new car sales are down 27 percent this year in Japan, with Toyota’s Lexus brand seeing a 24 percent decline in its home market. Lexus sales in the U.S. – the marques largest market – are also significantly down from last year’s figures.
