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Toyota to halt production as auto sales tumble

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After a 37 percent decrease in U.S. sales in December, Toyota Motor Corp. will suspend production at all 12 of its Japanese plants for 11 days in February and March, the longest production halt in its history, the Associated Press reported.

The news comes after reports showed that U.S. auto sales fell 36 percent in December; every major manufacturer reported declines of more than 30 percent. For the entire year, U.S. auto sales were down 18 percent to 13.2 million from 16.1 million in 2007.

Chrysler LLC sold 53 percent fewer vehicles in December and 30 percent fewer in all of 2008 than in 2007. General Motors Corp.’s December sales dropped 31 percent despite huge incentives offered by the company after the Bush administration agreed to give it $5 billion in aid to boost its financing arm, GMAC LLC.

Honda Motor Corp.’s sales fell 35 percent, and Ford Motor Co.’s sales dropped 32 percent.

The last time Toyota halted production at all 12 of its Japanese plants was in August 1993, when the rising yen caused demand to plunge; then it was only for a day.

Chrysler also shut down its manufacturing plants for the month of December, longer than the two-week break it usually takes. General Motors has said it will shut down a plant in Thailand for up to two months.