Japan’s auto maker profits slide hurting their workforce
Writing by admin on Wednesday, 18 of March , 2009 at 4:13 pm
Its no secret there is a recession in Japan. Toyota, Honda and Nissan have recorded major losses in the last quarter of 2008. Lay-offs in the top 3 auto maker’s personel seem to be bucking the once cherished “job-for-life” mentality.
In the heavily industrial prefecture of Aichi, massive lay-offs mean the economic effect of an export-based economy is even more present. According to news sources, Toyota posted a 28% drop in profits from year-on-year earnings. What that means to the region is there are now more people looking for jobs than there are jobs available. Toyota lays off, then their suppliers lay off.
Toyota is still producing some of the world’s best cars, but like every other car maker, it means they have to trim an already trim operation. The “Toyota Way” of trim 10% and then trim another 10% may go far in a healthy economy, but in current economic condition, its hard to trim 10% off a skeleton…
Category: Manufacturers
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