Toyota may slash car output 12% this year

Toyota Motor Corp, the world's largest automaker, may cut its production by 12 percent next fiscal year, as demand for cars in the US falls to the lowest level in 27 years.

The company may build 6.2 million vehicles in the year starting April 1, compared with its planned 7.08 million this fiscal year, Yuta Kaga, a spokesman, said yesterday by phone. Toyota gave the estimate to suppliers on Feb 27. The figures exclude the company's Daihatsu Motor Co and Hino Motors Ltd units.

Toyota has forecast its first net loss in 59 years, as vehicle sales plunge in the US, Japan and Europe, its biggest markets. The recession has also forced General Motors Corp and Chrysler LLC to get bailouts from the government and Nissan Motor Co to eliminate 20,000 jobs.