The Hindu Business Line : Recession forces Toyota go-slow

Bangalore, Jan.8 Recession has forced the world’s leading car maker Toyota to slash production at its auto parts’ joint venture in India by as much as 40 per cent.

Toyota has also increased the quantum of training of its workers at its car plant as it goes through a slowdown in production.

“Production has reduced in TKAP, by as much as 40 per cent from earlier levels. It will be back to normal as soon as market conditions revive,” the newly-appointed Deputy Managing Director of Toyota Kirloskar Motor, Mr Shekar Vishwanathan, told Business Line. Both Toyota Kirloskar Motor as well Toyota Kirloskar Auto Parts (TKAP) are joint ventures between Toyota Motor Company and the Kirloskar Group.

Sources in the company said before the auto recession hit the industry, TKAP was working to its full capacity of producing 1.6 lakh manual transmission units. It used to earlier produce about 500 units per shift per day. TKAP is a global resource for the International Motor Vehicle project of Toyota Motor Company and supplies R type manual transmission to seven vehicle assembly plants of the company across the globe. TKAP also makes propeller shafts and front and rear axles. It employs about 550 workers in the plant.

Towards clean and green city

Mr Vishwanathan said because of the slowdown, Toyota has started increasing the quantum of training of its workers so that their idle time is utilised fully. He said for the remaining time, employees have started engaging themselves in activities such as promoting clean and green areas in Bangalore. He pointed out that this initiative has come from the employees themselves. Mr Vishwanathan was earlier the whole-time director of Toyota Kirloskar Motor and was promoted as the joint managing director, commercial, this week.

Mr Vishwanathan said in spite of the slowdown in production, Toyota would continue with the ‘just-in-time’ (JIT) production system. “Our suppliers of auto components, at any time, follow the Kanban system. JIT remains the core principle even during this current condition,” he said. He also ruled out any plans to increase the inventory or the number of suppliers at short notice but the company would “increase or decrease” the pace of manufacturing depending on the needs of its customers. He said Toyota would not lay off employees nor are they being asked to go on leave because of production cutbacks.

He said the Rs 3,200-crore compact car project was on schedule and the company expected to launch the product towards the end of 2010.