Toyota to Cut Production

This is no surprise. But Toyota is well positioned to rebound once the worldwide economy recovers.

Toyota to cut capacity amid sales slump

TOKYO, Aug 26 (Reuters) - Toyota Motor Corp., the world's largest automaker, said it would halt a production line in Japan as it looks to cut excess capacity to return to profitability amid an industrywide sales slump.

Car plants around the world are idle or running below capacity as the industry copes with a slide in sales that sent General Motors Co. and Chrysler Group LLC into bankruptcy and has Toyota headed for a record loss this year.

Total cuts could reach 700,000 cars, or 7 percent of Toyota's global capacity, including a production line in Britain that may be halted and a joint venture with General Motors in the U.S. likely to be closed, a source with knowledge of the matter said.

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