Toyota

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Toyota Trims Production Further
Kwame Jarvis
Effective Business Communication
Dr. DiSiena

TABLE OF CONTENTS

Executive Summary (Abstract)…………………………………………………………………...3 Introduction………………………………………………………………………………………4 A. Statement of the Problem
B. Scope or Limitations
C. Procedures
Body of Report……………………………………………………………………………………5 A. Background……………………………………………………………………………….5 B. Determinations of Criteria………………………………………………………………...6 C. Discussions of Findings…………………………………………………………………...8 Summary/Conclusions Recommendations………………………………………………………..9 Appendices………………………………………………………………………………………10 Works Cited……………………………………………………………………………………...11

EXECUTIVE SUMMARY

This report is about Toyota and how they had to scale back on production. Toyota is one of the world leading automakers. The economy is on a spiraling downfall and it is causing a lot of big name companies to cut back whether it is limiting employee hours or firing employees. Another factor that goes into play is over-production and over-paid workers. Therefore, Toyota was forced to make some changes with their North American plants to cope with what they called “the worst automotive slump in decades.”

There are a few things Toyota plans to do in order to help the situation. Toyota plans on scheduling “non-productions days” which they hope would suppress the over-production issue. Some other possibilities are shortening work weeks at certain plants, eliminating executive bonuses and trim executive salaries, and offer “no wage increases for the foreseeable future.

This report will give you details on how Toyota plans to deal with the situation. Also how Toyota is already affected by it and their plans to cope with it.

INTRODUCTION

This report was written to give an idea on how the economy and certain factors can affect a company with such clout as Toyota. The problem is how Toyota had to scale back on production. Toyota is one of the world leading automakers who is based out of Japan but have plants throughout the world. With the economy on the bad end of the totem pole, it is causing a lot of big name companies to cut back whether it is limiting employee hours or firing employees. Another factor that goes into play is over-production and over-paid workers. Therefore, Toyota was forced to make some changes with their North American plants to cope with what they called “the worst automotive slump in decades.” There are a few things Toyota plans to do in order to help the situation. Toyota plans on scheduling “non-productions days” which they hope would suppress the over-production issue. Some other possibilities are shortening work weeks at certain plants, eliminating executive bonuses and trim executive salaries, and offer “no wage increases for the foreseeable future.

This information was gathered through different articles pertaining to the issue. This report will show how Toyota and possibly other big name companies may go about or may not go about handling the situation. Mainly it will show how Toyota is affected by it. A graph and some possible numbers will help with it.

BACKGROUND

Toyota’s problems stem from the struggling economy. The U.S. economy slipped into recession in December 2007, the nation's business cycle judge had declared this, and many have said this slump could be the worst since World War Two. The National Bureau of Economic Research (NBER) said its business cycle dating committee members met and concluded that the economic expansion that started in November 2001 had ended. The previous period of economic expansion, which ended in 2001, lasted 10 years. The current recession, which many economists expect to continue through the middle of this year, is already the third-longest since the Great Depression, behind only the 16-month slumps of the mid-1970s and early 1980s. The NBER does not define a recession as two consecutive quarters of decline in real gross domestic product....
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