Toyota plans to cut production

Car manufacturer Toyota is planning to cut production at its UK factories by introducing a new shorter working week or by a temporary shutdown of its sites at Burnaston, near Derby, and Deeside in North Wales.

The Japanese car giant will announce how it will cut production in a bid to reduce costs after a sharp fall in demand for new cars saw European sales fall 10% last year.

The new plans are just one part of cost cutting measures introduced by the company, which produces the Yaris, after already cutting 200 temporary jobs and opening a voluntary redundancy scheme.

A company spokesman said: "We have to reduce our costs further. Our employees recognise that and we are seeking agreement with the unions."

Toyota, which employs 3,900 workers at Burnaston and 570 at Deeside, has also shelved an annual pay increase for employees and cancelled management bonuses, and both factories have only just reopened after a two week shutdown.

A total of 85% of the cars produced at the plant in Burnaston, which makes the Avensis and Auris models, are exported.

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