Toyota is to cut production at its Burnaston factory in Derbyshire.
From September, Toyota says it will scale down production of its Auris small family car, making around 150 fewer vehicles a day.
Toyota says the move is a temporary measure and that none of the 4250 full time staff will lose their jobs as a result, however some 300 temporary jobs may be affected.
The company blames 'difficult market conditions' for the cut in production but hopes the car market will pick up in 2009.
Toyota isn't unique in feeling the brunt of the worldwide economic downturn. Fiat and Peugeot have also cut back production recently and much of the talk at this week's motor show was that the economic conditions for car manufacturers is going to get tougher before it gets better.
Production of the Auris began at Burnaston in February last year. The plant also makes the Avensis family car, which is being replaced later this year.