Last year was a tough year for all manufacturers, even the world's biggest (and arguably the most successful) manufacturer, Toyota, reported its first-ever annual operating loss. The Japanese giant has today announced that it will halt all plans to build new factories in Thailand and Russia.
Toyota notes the current decline and slowing demand for cars worldwide as the cause. The company is also faced with a crippling rise in the yen, making exports less profitable.
Much like Suzuki, Toyota will also plan to cut capital expenditure as well as car production to cope with falling global auto demand. The freeze in plans for the Russian and Thai factories is only the beginning of the company's restructuring process.
The Thailand engine plant was meant to have an annual production capacity of around 150,000 diesel engines a year, this would have allowed Toyota to increase its diesel engine output capacity to 350,000 units by 2010 and create about 700 jobs.
Toyota already has an existing plant in Russia with the capacity to output around 50,000 cars a year, however as the plant is not running at full capacity, the big T has no reason to go ahead with plans to build a secondary factory.
News of the company's troubles makes us wonder how much longer Toyota will stay in Formula 1 and other motor sports.