Japan auto production tumbles again in May

Thursday 25th June, 03:02 PM JST

TOKYO —

Global production at Japan’s top automakers tumbled in May, hit by a lingering slump in demand and uncertainty over a recovery in the battered industry.

Toyota Motor Corp., the world’s biggest carmaker, said Thursday its worldwide output dropped 38.8 percent from a year earlier to 442,621 vehicles _ the 10th straight monthly decline.

Among key regions, Toyota’s production in the United States plunged 48.2 percent to around 56,000. Toyota operates five auto plants in the U.S. In Japan, Toyota made 192,637 vehicles, down 41.9 percent year-on-year.

Like their foreign rivals, Japanese automakers have been hammered by the global slump in auto demand, tightening credit in the key North American market and the strong yen, which erodes their overseas profits.

Amid the industry’s worst crisis, shareholders of the Japanese auto giant approved Tuesday the appointment of Akio Toyoda as new president. Toyoda, the grandson of the automaker’s founder Kiichiro Toyoda, faces the daunting task of reviving the battered company.

Toyota lost 436.9 billion yen ($4.6 billion) during the fiscal year through March, its worst loss since it was founded in 1937. It expects an even larger loss this year.

Honda Motor Co., Japan’s No. 2 automaker, said its global production continued to tank in May. Honda made 195,085 vehicles worldwide, down 38.4 percent.

To cope with plummeting demand, Honda halted auto production in Europe from February to May. But Honda said it is resuming production at its plant in Swindon, in southern England, Honda’s only vehicle factory in Europe.

Nissan Motor Co. said the pace of decline in global production became moderate in May. The Japanese carmaker, allied with Renault SA of France, made 201,340 vehicles worldwide, down 27 percent from a year earlier.

“In March and April, our global production plunged 44.9 percent and 38.2 percent respectively. In that sense, the latest figure is an improvement. But overall global demand is still weak and market conditions remain severe,” said Nissan spokesman Mitsuru Yonekawa.

Nissan’s production in Spain nose-dived 68.4 percent in May, while its output in the U.S. plunged 41.4 percent. Output in Japan fell 36.3 percent.

But China is the bright spot for Nissan with production in the world’s third-largest economy soaring 56.8 percent in May thanks to booming demand for the Teana sedan and the Tiida subcompact car.

Mitsubishi Motors Corp. said its global production in May totaled 44,902 for the 15th straight monthly decline, marking a 54.6 percent drop from a year earlier.

Mazda Motor Corp. also reported a drop in global production at 66,531 vehicles, down 37 percent.

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14 Comments

hamiltontruther at 08:42 PM JST - 25th June

that's what happens when your economy is export driven when the global economy tanks and the competition, mainly north american, produces quality vehicles. boo hoo japan.
noborito at 08:55 PM JST - 25th June

Why would any patriotic American buy a Japanese car in this economy. Time to buy American Made by Americans. Party is over for Japan. Unless it has a Made in the USA and a Toyota America 100% owned by Americas sticker on it, sorry Japanese companies not going to buy it. The way Japan has done business in for years is going to come back and bite you in the axx. Even GM cars in Japan are sold under the Toyota brand so that Japanese people buy it. Well guess what, unless Toyota, Honda etc. are American companies, we are going to buy American first, and keep profits etc all in America. The party is over. Buy USA. Take care of us at home first.
himasan at 09:13 PM JST - 25th June

American companies dont make quality cars, otherwise they wouldnt be in the strife they are in today. Every GM and ford car Ive owned that was built after 1980 has been absolute garbage, on the contrary every Japanese car Ive owned has been excellent. noborito, name 1 GM car that is sold under the toyota brand.
Sarge at 09:24 PM JST - 25th June

"we are going to buy American first"

That would be your made-in-America Toyota or Honda, not your made-in-Canada with made-in-various countries, anywhere-but-America, parts GM, Ford or Chrysler cars.
TokyoHustla at 09:45 PM JST - 25th June

Plain and simple, American car makers build the best cars in the world and the Japanese cannot sell to that market any longer.
noborito at 10:38 PM JST - 25th June

Dear Himasan, Cavalier (lift the hood and you see GM) it was an extremely popular car 5 years ago in Japan. It was sold under Toyota. I know, I own one.
dontpanic at 01:09 AM JST - 26th June

"the competition, mainly north american, produces quality vehicles."

"Plain and simple, American car makers build the best cars in the world"

Oh dear oh dear oh dear.....
GW at 01:18 AM JST - 26th June

nobotito

in case you didnt know parts for cars are sourced from all over the damned planet, & GM Ford Chrysler have been putting together crap for the most part for decades, thats why foreign cars(even those put together in the states & Cda)havew done well, GM may not even be around much longer without massive handouts to then put put more crappy product, which you can go ahead & buy, how about a Pontiac, oh yeah those are going to the way of the dodo...........

I feel the J-market is rigged for the local makers but GM Ford etc need to make something at least half decent if they want to any biz outside NAmerica
Sarge at 06:18 AM JST - 26th June

TokyoHustla - Har!
bushlover at 09:35 AM JST - 26th June

Hahaha. Looks like Korea is doing what they planned. Beat Japan economically. N American makers weren't much competition with the crap they built. But Korean cars are up and coming. Cheaper and better warranties that the stubborn Japanese makers.
Tigertty at 04:20 PM JST - 26th June

If Americans don't start buying GM cars quick the American taxpayer is going to take it in the axx. Just don't expect Toyota to take it lying down or quit for anyone on their long-term plan to dominate the American market or industry - end of story.
sfjp330 at 03:11 AM JST - 27th June

The issue is not really about the quality of vehicles. U.S. has over 10 percent unemployment rate and people are not spending money on the big ticket item. Also, company such as Toyota changed the loan requirements this year from 4 levels to 6 levels with top level around 24.99 percent annual interest rate. Also, the qualification to get a loan is more difficult. If you have less than 650 in credit ratings, most likely you cannot get a loan. Banks has to loosen the loan requirements to increase sales. This will not happen until the housing situation is stablized and it will take 3 to 4 yearsin the U.S. If the U.S. has healthy economy, others will follow.
hamiltontruther at 11:51 PM JST - 28th June

@dontpanic; oh dear is right. i'm frightened of comments like this because they show how radically out of touch the public is about the quality of cars. north american makers are building fine cars and have been doing so even better than the japanese cars. this article is about buick having better reliability than lexus.http://www.msnbc.msn.com/id/29771188/

and this is just one example of many clearly showing how north american cars do better than their japanese counterparts.
hamiltontruther at 11:55 PM JST - 28th June

@GW; "I feel the J-market is rigged for the local makers but GM Ford etc need to make something at least half decent if they want to any biz outside NAmerica."

you have the first part correct, the local j-market is rigged for the local car makers, however as of very recent we can see many north american cars being driven around the tokyo metro area. many more than in the past.