GAC Toyota Motor Co,France Archives a joint venture between Toyota and China’s GAC Group, has begun massive layoffs affecting over 1,000 contract workers at its Guangzhou factory, as sales have fallen in recent months. The company confirmed the news in a statement to Reuters on Monday, adding that the decision reflects the company’s recent production levels. The carmaker said it would provide severance packages to those affected, as required by law. The Guangzhou plant has an annual production capacity of 1 million units, but saw sales decline by 5.2% year-on-year to 429,662 units in the first half of this year, according to figures from the China Passenger Car Association. Peer Mitsubishi’s China operations suspended production in June at its local joint plant with partner GAC due to competitive pressure from Chinese rivals. [Reuters]
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