Toyota Astra Motor to slash production

JAKARTA (JP): Toyota Motor Corp. plans to halve production at its Indonesian unit, PT Toyota Astra Motor (TAM), to between 3,000 to 4,000 vehicles per month starting this month.

"Under the cut, Indonesian production will be halved. We plan to continue single-shift production at the Indonesian plant for the time being," Reuters quoted a Toyota spokesman as saying.

An official at TAM confirmed the news saying that sluggish sales due to the monetary crisis caused the company to reduce production.

"This month alone, we plan to produce just 3,000 Toyota vehicles," the official, who asked for anonymity, said.

He said TAM produced 4,000 vehicles in January.

Production plans are now being made on a month to month basis depending on the situation of the country's currency, he said.

"No one can predict the future of Indonesia's automotive market due to the rupiah's persistent plunge against the American dollar," he said.

The official said that under the cutback plan, TAM planned to reduce its production shifts at its plant in Sunter, North Jakarta to one shift from two shifts previously.

PT Toyota Astra Motor is 51 percent owned by the country's largest automaker, PT Astra International, and 49 percent by Toyota Motor Corp. of Japan.

In addition to its Sunter plant, the company has a production facility in Karawang, West Java.

The Sunter plant produces Land Cruisers, Crowns, Kijangs, Coronas, Corollas and Starlets.

He said the Karawang plant, expected to start production late this month, would have a production capacity of 30,000 Corollas per year.

"The Karawang plant is now in its trial process. Hopefully it can start producing Corollas soon," he said.

He said last year TAM sold 68,139 vehicles, 25.38 percent of the country's total auto sales of 386,709 units.

He said the company had projected two sales scenarios for this year.

"The optimistic target put total car sales at 200,000 units and the pessimistic one at 120,000 units," he said.

He added that TAM expected to control 25 percent of the total market this year. (aly)