LOS ANGELES -- Toyota Motor Sales U.S.A. Inc. told employees this week that it is suspending annual merit pay increases. The move tracks actions by the Japanese automakers North American manufacturing operations to freeze wages, reduce hours and adopt a voluntary exit program.
The measures come as the automaker faces its first financial losses since 1950 because of a worldwide collapse of sales. Toyota Motor Corp. seeks $5.5 billion in global cost reductions.
The move to eliminate merit pay increases will affect all 6,813 U.S. workers in the sales operation, says spokeswoman Sona Iliffe Moon. It follows previously announced steps to cut costs that included eliminating overtime, canceling dealer meetings, reducing marketing costs and curtailing travel.
Also this week, the U.S. unit laid out cutbacks at its subsidiary, Toyota Logistics Services. Toyota Logistics is offering voluntary exit packages for hourly employees at port facilities in Long Beach, Calif., and Portland, Ore. Port employees unload imported vehicles and install accessories.
Employees who transport vehicles from the plants to the dealerships will adopt reduced workweeks and be offered separation packages.
Moon says Toyota Logistics has about 1,200 employees.