Japan Auto Production Drops Most Since 1967

TOKYO — Japan's production of cars, trucks and buses marked its steepest drop in at least four decades in November, an industry group said Thursday, as the fallout from the U.S. slowdown crimped auto demand.

Vehicle production in Japan, home to Toyota Motor Corp. and other major automakers, plunged 20.4 percent in November compared to the same month a year ago to 854,171 vehicles, the Japan Automobile Manufacturers Association said.

That marked the second straight month of on-year declines and the percentage slide was the biggest since the group began compiling such data in 1967, it said.

Production of passenger cars in Japan decreased 20.3 percent in November from the previous year to 737,797 vehicles, while production of trucks here declined 20.9 percent for the month to 106,170.

Japanese automakers, which also include Honda Motor Co., Nissan Motor Co. and several other manufacturers, have been hammered by the dwindling of demand in the U.S., the world's biggest auto market.

But signs are growing the fallout is so serious domestic sales are getting drastically damaged as well.

Auto executives have expressed dismay at the fall in Japanese sales, which have worsened in the last two months.

Japanese plants are being idled to reduce production, and thousands of assembly line workers have lost their jobs in recent weeks.

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"Even if we are doing our utmost, the global crisis is coming at us like a tidal wave," Teruyuki Minoura, president of Daihatsu Motor Co., a Toyota affiliate, told reporters Thursday.

Earlier this month, the Japan Automobile Manufacturers Association said it expected demand in Japan will dive next year to its lowest in about three decades.

Sales of new autos are expected to stand at 4.86 million in 2009, down 4.9 percent from what it's projecting for this year at 5.11 million, the group said.

New vehicle sales in Japan have never dipped below the 5 million mark since 1980. They reached 7.78 million in 1990, during this nation's heyday "bubble" economy.

Vehicle sales in Japan stood at about 5.02 million in 1980, and at 4.31 million in 1975.

Toyota Executive Vice President Akio Toyoda apologized for the public concern that Japan's top automaker has set off by forecasting its first operating loss in seven decades for the fiscal year ending March 2009.

"The overall world economy is said to be facing its worst crisis in 100 years," he told reporters.

But Toyoda brushed off questions about a recent Japanese media report that he may be promoted to president soon, and instead insisted on talking about a new car he said he hoped would appeal to women.

"This car is for housewives, moms and women. In hard times like these, it's best if women are full of life and happiness," he said.

Comments

[NoPCZone]

As soon as fuel prices started to rise the prices of the smaller, more fuel efficient Japanese cars rose dramatically. A Honda Fit, marketed as the Jazz or City elsewhere, is nothing more than a pint-sized commuter car. Honda shipped these to the US stuffed with paddle shifters, Navigation system and other crap designed to jump the price of an economy car to the stratosphere.

All of the Japanese makers have bundled options in such a way as to make it impossible to get a feature such as a sunroof without buying the largest engine and most pimped out interior. You can't get a decent feature set on some models without buying a leather interior. Otherwise, they have learned how to steal and are not interested in selling cars of value to the customer.

Finally, tell me why the dealer's asking price for the Prius jumped from the low $20k's to $30+ K's almost overnight. It's greed pure and simple. They can choke on their overpriced junk.

[senorlou]

Hate to argue with you, but you can pick up a Honda Fit - fully loaded without the nav - for about $18K out the door. Go to edmunds.com and see what you get for your money. I can tell you, the US carmakers can't touch the Japanese as far as value for your money goes. That's the problem. The other problem is the financial meltdown which will hurt everybody. The Japanese are about 10 years ahead of the US as far as small economy cars go. Trust me, I've driven the Aveo and the Focus. They can't touch what the Japanese are selling in that segment.

[lvdragonlady]

The buyers of foreign cars and trucks are part of the problem not the solution to the problem.
We should have limited how many could be allowed into the country.
And to the Big 3 - stop trying to copy the foreign cars. Come up with BETTER designs and reasonable prices and maybe Americans would buy American again.
You know what made America so great, the unique designs of the 57 chevy, the ford mustang, dodge Jeep and charger...........You had great ideas Big 3, what happened?

[pharm]

The only auto workers who "lost" their jobs so far are "seasonal", or part time, low wage workers. The rest go in the jobs bank where unlike UAW workers, they receive 100% of their pay. I think maybe Toyota should ask their union for concessions, yes they have unions, owned by the company. Their labor costs are about 8% of income, and according to what GM reported this week(labor cost, $18 billion in 2007, $8 billion in 2008) that is higher than the percentage GM pays. It is all the Unions fault! HA!