Japan's top car parts maker Denso Corp. is planning a large-scale production halt for the first time in its near 60-year history, an official said on Jan. 21, as the auto industry slumps.
Denso will stop all manufacturing lines at its domestic plants for a total of 14 days between January and March, excluding the one that makes production facilities for its own group, spokeswoman Miwa Kurokawa said. "Carmakers are reducing production. We decided on our operation halt in line with Toyota Motors' production suspension," she said.
Toyota, which expects its first-ever operating loss this financial year to March due to the global economic crisis, is suspending operations at all 12 of its domestic factories for 11 days in February and March.
Roughly half of Denso's products go to the Toyota Group. The company also supplies General Motors and other automakers.
It is Denso's first large-scale production halt since the company was established in December 1949, it said.
In December Denso slashed its forecast for net profit to one 10th of an earlier projection for the current business year due to the poor performance of the auto industry and a strong yen.
Copyright Agence France-Presse, 2009
