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Toyota raises Japanese base wages for first time since 2008

Toyota is on track for record profits, and in return, its Japanese workers are receiving their first increase in base wages since 2008, plus higher pay based on seniority and a larger bonus for 2014. The Japanese automaker predicts the average laborer will net a 2.9 percent income gain.
The average Toyota employee will earn 2,700 yen ($26.28) more each month, a 0.8 percent increase from last year. Workers will also receive about 7,300 yen ($71.09) more monthly based on seniority and promotions. Finally, the company's union pushed through a median bonus of 2.44 million yen ($23,768) for 2014, the highest in 6 years.
The pay boost comes as Toyota forecasts a record 1.9-trillion yen ($18.5 billion) profit for the fiscal year ending on March 31, according to Bloomberg. It has been helped by the Japanese government's efforts to weaken the yen on international markets and expand inflation. Prime Minister Shinzo Abe has been asking businesses to increase compensation to end years of deflation and offset upcoming higher sales taxes. Honda and Nissan have also raised their wages there in recent months.

Earthquake causes most of Toyota's Japan operations to shut down

Toyota is idling a large portion of its Japanese assembly plants as a result of the devastating earthquake in Hokkaido, Japan. The earthquake had such a big effect on the carmaker's supply chain that a number of its plants will have to be shut down for an undisclosed period, starting on Saturday. The 6.7 magnitude earthquake occurred early on September 6 th, resulting in more than dozen casualties and hundreds of injuries, cutting power to the entire island; the powerplant supplying half of the island's power was located so close to the earthquake's epicenter that it shut down automatically, bringing down the rest of the island's grid with it. Tens of people were also reported missing, as reported by Reuters. The affected factories are the Kyushu, Tahara and Toyota Auto Body plants, according to Automotive News, and they manufacture vehicles such as different Lexus models and the Toyota Land Cruiser. Some of the models produced in these factories are exported to the United States, but a Toyota spokesman said that North American operations are not likely to be significantly affected by the plant closures. As well as the automobile assembly plants in Hokkaido, Toyota also has a facility there that manufactures transmissions and transfer cases. As it was also without power, Toyota could not confirm when the plant would be back online. Out of Hokkaido's 2.95 million households, 1.54 million had regained power by Friday afternoon. All in all, Toyota has 18 manufacturing facilities in Japan; spokeswoman Akito Kita said that from Monday on, the shutdown will affect all Japanese Toyota and Lexus lines — not including two Daihatsu facilities that are also used for Toyota products. The shutdowns come directly after Toyota also announced a recall for Japanese-built hybrid models, mainly Prius. Related Video:

Toyota, Mazda $1.6 billion plant goes to Alabama, sources say

Alabama will be the site of a new $1.6 billion Toyota and Mazda auto plant, a victory for President Donald Trump who had prodded manufacturers to build new U.S. facilities and threatened tariffs on foreign production, sources said on Tuesday. The plant, which will employ up to 4,000 people and produce about 300,000 vehicles a year, will be located in Huntsville, Ala., and is a boon for the state, where Toyota has a large engine plant and an existing network of automotive suppliers. A formal announcement by company and state officials is expected on Wednesday in Montgomery, sources briefed on the matter said. The new plant — in a state Trump won by 28 points in 2016 — could be a political boost to the Republican president, who has urged automakers to build plants in the United States and add jobs. The companies said they expect the plant to open in 2021. Trump tweeted in March he wanted "new plants to be built here for cars sold here." The White House did not immediately comment on Tuesday. The announcement also comes at a time of declining U.S. auto industry sales, so it could exacerbate overcapacity and add pressure to cut prices. U.S. new vehicle sales fell 2 percent in 2017, after hitting an all-time record high in 2016, and are expected to fall further in 2018. Details of an anticipated tax and incentive package for the investment were not yet known. It has been reported the companies sought at least $1 billion in incentives. A Toyota spokesman declined to comment, except to say an announcement was expected soon. A Mazda spokeswoman also declined to comment. In recent months, the companies had narrowed their choices down to sites in Alabama and North Carolina. Local media last month said the leading site under consideration was in northern Alabama's Limestone County, near Toyota's large engine plant in Huntsville. In September, Toyota announced a $106 million technology upgrade for the Huntsville plant. A Chamber of Commerce of Huntsville website for the "Huntsville Mega Site" touts the fact it has been "certified as development-ready." The commerce chamber, local and state officials declined to comment on Tuesday on plans for the plant. A year ago, President-elect Trump criticized Toyota and threatened hefty tariffs against the Japanese automaker if it built its Corolla sedan for the U.S. market in Mexico. "Toyota Motor said will build a new plant in Baja, Mexico, to build Corolla cars for U.S. NO WAY! Build plant in U.S.