Toyota Cuts Managers' Bonuses by 60%

Union bonuses will be reduced 10-20%

Toyota Motor will slash summer bonuses for its 8,900 managers by an average 60% from a year earlier due to a slump in the global auto industry, a company spokeswoman said on April 22.

Toyota has separately agreed with its labor union to cut annual summer bonuses for its 63,000 members by 10% to 20% to an average 1.86 million yen (US$18,900) for this fiscal year, which started on April 1.

Toyota's executive board members will receive no bonuses for the current fiscal year, the spokeswoman added.

"The measure is based on the understanding that we should all share the pain," the spokeswoman said.

Toyota's domestic production is likely to fall below three million vehicles for the first time in three decades in the current business year as demand slumps, the Yomiuri Shimbun report said on April 21. The company has already shed thousands of temporary workers and the daily said pressure would mount for a reduction in the number of the regular workers.

Toyota overtook General Motors last year to become the world's top-selling automaker, but only because the U.S. giant's sales fell faster than its own.

Toyota has forecast its first ever loss for the last financial year to March.

Copyright Agence France-Presse, 2009

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