Toyota Brakes The Daily Production and Next Plans to Produce 12,000 Units Daily

Toyota Brakes The Daily Production and Next Plans to Produce 12,000 Units Daily

Toyota Motor Corp. will put the brakes on the daily production of up to 15 percent starting in April 2014 in Japan. The move is in anticipation of a weakening market, due to the increase in sales tax, which is set by the government in the country. Sales tax burden rose to 8 percent from 5 percent. It is predicted to interfere with consumers' desire to buy a new car, when applied effective on April 1, 2014. The market is also expected to be shocked temporary, down from the normal condition.

The tax increase engineered by the previous opposition government, but was approved by Prime Minister Shinzo Abe. The IMF also urged that this policy of immediately enacted to control the huge Japanese debt, with the risk that the slower economic growth in the short term.

Internal company sources told Reuters that Toyota's production capacity is set at 12,200 units per day, down 15 percent from the same period of the previous year. This plan seemed to break Toyota's plans had been announced, starting in January, daily production increased to 4 percent, while in February and March were up 3 percent.

Toyota spokesman Naoki Sumino said the company does not disclose its monthly production plan to the public. Nikkei reported that Toyota plans to produce 12,000 units in April. Last week, Japan's biggest brand has announced the production of 2014 will be down 6 percent to 3.15 million units. "Of course we set the daily production. I do not really notice it," said one of the officials of Toyota. Akio Toyoda, President and CEO of Toyota, hopes that the impact occurred only lasted three months. "We want to see what happens after July? Is there a market improvement," said Toyoda.

The tax would cost the consumer against the cost of healthcare. Consumers can also speculate, buy a lot of stuff, including a house, car or other needs, before taxes imposed.