Around 750 jobs will be slashed in Toyota’s Midlands and North Wales plants. The news comes despite a late surge in sales reported in the final quarter of last year. Toyota’s UK car production dropped 40 per cent between 2008-09, from 213,000 to 127,000. The company also admitted it would have to recall cars in the UK and China due to faulty accelerators and floor mats. This will add to the millions already recalled across the world.
Toyota Manufacturing UK said: “2009 was a tough year. During a meeting with our employee representatives on Monday we confirmed that we will have a headcount surplus of around 750 members from August onwards.”
Meanwhile, South Korean carmaker Hyundai saw profits jump fourfold in the final quarter of last year, as government incentives helped boost sales. Earnings for the period hit $820m (£505m), smashing analysts’ forecasts, rising from just $212m the year before. The results were boosted by a 70 per cent reduction in taxes to encourage Koreans to buy new cars.
Global sales were also healthy, especially in China and India.