Carmaker Toyota is expected to announce cuts in production at its UK factories.
Carmaker Toyota says that staff at its UK factories will have their pay and working hours cut by 10%.
Nearly 4,500 staff at its plants in Burnaston, near Derby, and Deeside, Flintshire, are expected to accept a 10% pay cut as the working week is cut.
The cuts will take effect on 1 April and will last for one year. They affect 4,500 staff at plants in Burnaston, Derby, and Deeside, Flintshire.
The half-day reduction comes just after the factories reopened following a two-week shutdown, with further non-production weeks planned for April.
Toyota said the measures would allow the company to "maintain employment in this difficult period".
Motor industry representatives are due in London later for talks over the government's £2.3m support package.
The cuts come as motor industry representatives meet in London to discuss a £2.3m support package
Carmakers and suppliers have yet to receive any funds from the Automotive Assistance Programme, which was announced in January.
Carmakers and suppliers have yet to receive any funds from the Automotive Assistance Programme, which was announced in January.
The scheme has now been approved by the European Commission and industry figures are due to find out how to apply for loans or guarantees, which are linked to helping firms become greener, more innovative and productive.
The scheme has now been approved by the European Commission and industry figures are due to find out how to apply for loans or guarantees.
A series of carmakers have been forced to announce cost-cutting measures, including reducing production, freezing pay and stockpiling thousands of vehicles, in the face of a sales slump across Europe. CUTTING BACK Aston Martin: Extended Christmas shutdown and 600 redundancies. Temporary three-day week began in JanuaryBentley: Three-day week introduced. Closing Crewe plant for seven weeks from the beginning of March. 220 job cutsGM (Vauxhall): Extended Christmas closure and 40-day shutdownHonda: Four-month shutdown between February and MayJaguar Land Rover: Series of one-day shutdowns and production cuts late 2008, plus 450 redundancies plannedMini: 850 job losses. Five-day week introduced. Two-week shutdown planned for AugustNissan: Two-week shutdown late last year and 1,200 redundancies. Shift stoppagesToyota: Shorter working week. Staff offered voluntary redundancy. One of the night shifts suspended. Further shutdowns Source: SMMT
The funds are linked to helping firms become greener, more innovative and productive.
Cutbacks
Carmakers have been forced to announce cost-cutting measures, including reducing production, freezing pay and stockpiling thousands of vehicles, in the face of a sales slump across Europe.
UK CAR INDUSTRY CUTS 1: Aston Martin (Gaydon) 600 jobs lost, three-day week2: Bentley (Crewe) Three-day week introduced. 220 jobs lost, seven-week closure from March3: Ford (Essex, Daventry, Merseyside, Bridgend & Southampton) 850 jobs lost, four-day weeks, non-production days4: GM Vauxhall (Ellesmere Port & Luton) Extended Christmas closure. 40-day shutdown5: Honda (Swindon) Production halted until June6: Jaguar Land Rover (Solihull & Halewood) 1,050 jobs lost plus production cuts. One year pay freeze and four-day week. 7: BMW Mini (Swindon & Cowley) 850 jobs lost. Two-week shutdown planned for August8: Nissan (Sunderland) 1,200 jobs lost, some shifts stopped9: Rolls-Royce (West Sussex) 40 jobs lost plus non-production days10: Toyota (Burnaston & Deeside) Two-week shutdown. Pay and working hours cut by 10%11: LDV (Birmingham) 95 jobs lost, production suspended since December Source: SMMT & BBC
More than 3,000 UK redundancies have been announced in recent months, with parts suppliers also hit hard.
More than 3,000 UK redundancies have been announced in recent months, with parts suppliers also hit hard.
Toyota had been consulting unions on whether to introduce a shorter working week, a pay freeze or a temporary shutdown at Burnaston and Deeside.
Toyota employs 3,900 workers at Burnaston, where the Avensis and Auris are made, and 570 at Deeside.
A company spokesman said: "We have to reduce our costs further. Our employees recognise that and we are seeking agreement with the unions."
The firm employs 3,900 workers at Burnaston, where the Avensis and Auris are made, and 570 at Deeside.
It has already cut 200 temporary jobs and opened a voluntary redundancy scheme last week.
It has already cut 200 temporary jobs and opened a voluntary redundancy scheme last week.
Those who are eligible can apply for a quotation to see how much of a pay-off they would receive.
Those who are eligible can apply for a quotation to see how much of a pay-off they would receive.
The company said the scheme, which it calls "voluntary release", was requested by its employee representatives, and it has no target for how many people are expected to leave.
The company said the scheme, which it calls "voluntary release", was requested by its employee representatives, and it has no target for how many people are expected to leave.
Annual pay increases and management bonuses have been scrapped.
Annual pay increases and management bonuses have been scrapped.
Toyota has already said it will post the first group-wide annual operating loss - totalling more than £3bn - in its 70-year history.
Toyota has already said it will post the first group-wide annual operating loss - totalling more than £3bn - in its 70-year history.
Tony Woodley, joint leader of the Unite union, said the London talks between industry leaders and Business Minister Ian Pearson would bring vital stability to the sector.
Support needed
"We know the government have some good ideas about how to support manufacturing and the car industry through this recession," he said.
Tony Woodley, joint leader of the Unite union, said the London talks would bring vital stability to the sector.
Business Secretary Lord Mandelson is hosting the talks, which will help car companies apply for the EU-backed £2.3m support package.
Mr Woodley said: "We know the government have some good ideas about how to support manufacturing and the car industry through this recession.
"Our concern has been to ensure that we get this support, which is desperately needed right through the supply chain, out as fast as is humanly possible."
"Our concern has been to ensure that we get this support, which is desperately needed right through the supply chain, out as fast as is humanly possible."
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