Toyota says it halts some Tianjin operations after report of partial suspension

SHENZHEN, China (Reuters) – Toyota Motor (NYSE:) has halted production on some ageing lines at joint venture in China while operations continue as normal, the Japanese automaker said on Saturday after a media report that it was partially suspending production due to weak sales.

The production halt at the Tianjin venture with China’s FAW was a planned move, and Toyota is adjusting production on a daily basis based on changes in vehicle composition, a spokesperson said by email.

The email did not specifically address the Friday report by Japan’s Jiji news service that the world’s largest automaker by sales was suspending some production as part of a major production adjustment in response to weak sales of gasoline-engine cars.

The spokesperson did not immediately respond to follow-up requests for comment. A FAW representative did not respond to a request for comment on the Jiji report.

Reuters reported last month that Toyota had told dealers it would extend a plan to reduce output at the FAW venture.

Slowing sales pose a growing challenge to Toyota in China which accounted for nearly a fifth of Toyota’s worldwide sales of about 8.5 million vehicles over the first 10 months of the year, including sales of its luxury Lexus brand.