Toyota reportedly planning to cut production in China

China - Toyota is rumoured to slash some 10% of production in China, as sales in the country slide.

The Nikki economic daily said Toyota plans a 10% cut in production at Guangzhou Automobile, Toyota's joint venture company in China, because demand is falling due to tighter credit and falling share prices.

"As sales growth has become slower than we projected earlier, we are adjusting output," Toyota spokesperson Toshiaki Hori was quoted as saying.

Toyota is rumoured to have already stopped production of its Taris small passenger car, the newspaper said, without naming sources.

Toyota previously suspended some production lines in the US in response to the US credit crunch, and reportedly cut global output by 15.5% in August. In its August results, the carmaker said overseas production slipped for the first time in 80 months, because of decreased production mainly in Europe and North America.

The company has also been experiencing a tighter home market, with sales in Japan dropping for the first time in two months in August.