Production dips for some Indiana auto assembly plants

By: The Associated Press
By: The Associated Press

Toyota is cutting production at its Princeton, Indiana factory because of slumping sales.

Spokeswoman Kelly Dillon calls Toyota's slowdown a typical adjustment and there will be no layoffs. But the southern Indiana factory has released some temporary workers since last spring and plans to form employee working groups to study ways of improving productivity.

Toyota, Honda and several American carmakers all reported U.S. sales decreases last month. They blame weak consumer spending and high gas prices among other factors.

Indiana assembly plants also have been hurt by a strike against American Axle and Manufacturing Holdings. The strike idled assembly lines at Fort Wayne's General Motors pickup truck plant and Mishawaka's AM General.

Production at the Fort Wayne plant is starting up again this week.

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