Toyota Planning 20% Production Reduction As Hybrid Subsidies Subside

Hybrid cars are selling like hot cakes in America, Europe, and Japan, thanks in large part to generous government subsidies and tax cuts. That is why there are so many Toyota Prius’ on the road today (though the tax breaks for those cars have long since expired in America). While demand seems to have kept up here in America, in Japan Toyota is expecting a different story.

Reports indicate that Toyota may be getting ready to stunt production by as much as 20%, or to less than 12,000 cars per day, as generous Japanese eco-car subsidies come to an end.

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