Toyota Motor Corp., along with other Japanese automakers Honda Motor Co. and Nissan Motor Co., slashed domestic production sharply in April, though at a slower pace than the previous month, suggesting progress in reducing inventories amid the economic slump.  As auto demand tumbled in key markets across the globe. Toyota slammed the brakes on output in March to avoid inventory build-up,

For Toyota, brisk orders for their recently launched hybrid cars brought more encouraging news. Toyota released a remodeled Prius last Monday, with presales orders totaling more than 80,000 vehicles.  Despite the positive signs, Toyota and other Japanese producers are remaining on guard as a collapse of U.S. giant General Motors Corp. could dent auto sales in that market, pushing them to reduce domestic production of vehicles marked for export. Toyota, the world's biggest car maker by volume, said it reduced domestic output by 56.1% in April from a year earlier, compared with a 58.4% drop in March.