GAC Toyota Motor Co, a joint venture between Toyota and China’s GAC Group, has initiated a round of layoffs affecting more than 1,000 contract workers at its Guangzhou factory. 

This move comes as sales have experienced a decline in recent months. The decision to lay off workers is a reflection of the company’s current production levels. 

GAC Toyota Motor Co has stated that it will provide severance packages to those affected, as required by law. The Guangzhou plant has the capacity to produce 1 million units annually, but sales have decreased by 5.2% year-on-year to 429,662 units in the first half of this year, according to the China Passenger Car Association. 

Mitsubishi, GAC’s partner in China, also suspended production at their joint plant in June due to competitive pressure from Chinese rivals.

（Picture: Veer）