Toyota Motor Corporation (NYSE: TM) plans to cut Japanese production capacity by more than 10 percent by 2014, according to Auto News.
The Toyota City-based carmaker will not lay off any workers even though it will be reducing its domestic production by 500,000 cars to just 3.1 million, the publication said Tuesday. Toyota has already cut domestic production by 100,000 vehicles this year as it seeks to hedge against fluctuations in the value of the yen. However, Toyota will strive to keep domestic production at 3 million units even if the value of the yen starts to cut into export profits, according to Reuters.
Before the global economic crisis, Toyota was producing 3.9 million cars a year in Japan, according to Auto News. Moreover, the company hope to build 8.65 million cars world-wide in 2012, but the bulk of those, some 5.25 million, will be built abroad. Toyota hopes to increase global output to 10 million vehicles by 2015 with all of the gains coming from international production.