Tokyo - Japanese carmaker Toyota said Tuesday it is cutting back production of luxury cars and slashing bonus payments for thousands of managers as a result of declining sales. Toyota said it was reducing production of Lexus cars at two plants in Tahara in central Japan and Miyakawa in the south-west of the country on December 24 and 25.
Night shift work will also be partially halted in January at the two plants, which mostly assemble cars for export, the company said.
Toyota also plans to cut the winter bonus payments of about 8,500 managers by around 10 per cent.
The company did not disclose what savings would be made by the moves.
Last month sales of new cars in Japan plunged 27 per cent to the lowest November figure in 27 years.
Toyota warned last month that earnings for 2008 would drop 68 per cent below original predictions.
