The credit crunch is hitting the motor trade. According to The Times, car manufacturers Toyota are planning to cut car production for five months. Last year the Toyota facility at Burnaston, in Derbyshire, ranked as the second largest producer in the UK. They produced 277,000 cars, a figure only topped by Nissan?s Sunderland plant. Cut-backs will reduce their output by 15,000 cars over the next five months. The factory employs 3,800 permanent employees, and they have been told that their jobs are safe. The position of the 220 temporary employees is less secure, and some will definitely lose their jobs.
President of Toyota, Katsuaki Watanabe, said, “The business environment is rapidly becoming more difficult. Things remain very uncertain, not just in the US but in emerging countries and resource-rich nations as well. We cannot be optimistic now.”
Other major producers are monitoring the situation, according to The Times.