GM and Chrysler to Get $17.4 Billion in Rescue Loans

Didn't know which thread was best

Toyota Suspends Production for 11 days

TOKYO — Toyota is suspending production at all 12 of its Japan plants for 11 days over February and March, a stoppage of unprecedented scale for the nation's top automaker as it grapples with shrinking global demand.

The last time Toyota Motor Corp. halted production at all its Japan plants was in August 1993, when demand plunged because of a rising yen, and that was for only one day, according to the company.

A global economic downturn has hammered the auto industry in Japan and elsewhere, forcing carmakers to cut staff, lower production and delay new models. Major automakers in the U.S. had teetered on the brink of collapse until securing a multibillion dollar government lifeline.

"We are coping with a slump in global sales," Toyota spokesman Hideaki Homma said today. "Demand in the world auto market is so depressed that every model is falling sharply in sales."

Toyota said last year that it was stopping production at its 12 domestic plants for three days in January. But it decided on additional closures because of the global downturn. Toyota will stop output for six days in February and five days in March, it said.

Of Toyota's domestic factories, four produce vehicles while the rest make engines and auto parts.

Overnight, Toyota reported that its U.S. sales in December were down 37 percent on year, a worse drop than Ford Motor Co.'s 32 percent drop and General Motor's 31 percent slide.

Toyota last year suspended production at its auto plants in Alabama, Indiana and Texas for three months, and shut down output for two days in December at all its North American vehicle factories including five in the United States, one in Canada and another in Mexico.

Chrysler LLC also shut down its plants for a month in December, longer than the usual two-week break, while GM has said it would shut down a plant in Thailand for up to two months.

Toyota is also struggling in its home market, which has been stagnant for years. The sales drop has worsened amid a global recession.

Sales of new vehicles in Japan fell to 3.2 million vehicles last year, the lowest in 34 years, the Japan Automobile Dealers Association said Monday.

Last month, Toyota said it was slipping into its first operating loss in 70 years, expecting 150 billion yen ($1.66 billion ) of operating losses for the fiscal year ending March 2009.

Toyota, which makes the Prius gas-electric hybrid and Camry sedan, expects 50 billion yen ($555 million) in net profit, down from 1.7 trillion yen earned the previous year.

 

Hawaii Chevrolet dealer crushes auto competition

HILO, Hawaii – A Hilo Chevrolet dealer who tried to crush his Asian auto competition found the stunt a little harder to pull off than expected.

Island Chevrolet general sales manager James Severtson arranged for a Chevrolet Suburban SUV outfitted with massive tires costing $5,000 apiece to drive over a Honda Accord.

On the first attempt Friday, the monster truck blew a hydraulic hose and leaked vital fluid while the Honda remained intact and ready for more.

After several hours, the truck was repaired and driver Ryan Kepiki tried again, this time with a Hyundai Excel sedan parked next to the Honda.

Kepiki drove over the cars' hoods, destroying the windshields to the seeming delight of the rush-hour crowd.

Severtson said the dealership had been planning the crush-fest for a while. But he said it was a happy coincidence President Bush approved a bailout for U.S. automakers as the weekend arrived.

"We'd like to send the message that the best way to support your country is to buy an American vehicle today," Severtson said.

 

USA!! USA!! USA!!

 

I don't think this is going to help counter the whole "Japanese cars are more reliable" argument...

 

lol.