Drop in Exports to Cut Japan Domestic Car Output
15 November 2008
Nikkei. Domestic passenger car production in Japan is expected to fall for the first time in five years in fiscal 2008, sliding 7% below initial projections to 9.7 million units due to decreases in exports.
Initially, Japan’s eight major carmakers—including Toyota Motor Corp., Nissan Motor Co. and Honda Motor Co.—planned to produce a total of 10.4 million vehicles this fiscal year, up 3%. However, car sales have been sluggish worldwide since autumn, when the US financial turmoil surfaced, putting the brakes on exports.
The downturn has forced the automakers to scale back their production plans by more than 700,000 units.
Japanese carmakers are also reducing their overseas output, mainly in the US and Europe, where demand is plummeting. The eight companies will cut combined non-Japan production by 7%, or about 800,000 units, from the initially planned level, bringing the total worldwide reduction, excluding certain commercial models, to 1.5 million vehicles.
Canadians must be living on another planet. October 2007 to October 2008 car sales in Canada were:
- Big-3 = -5.4%
- Others = +8.8%
- All makes = +1.5%
- Honda = +1.1%
- Toyota = +9.4%
The downturn taking place elsewhere will certainly come soon together with much lower Oil price in the last few weeks.
Posted by: HarveyD | 15 November 2008 at 10:22 AM
Wait for couple of months, Harvey.
Global economy slow-down will take its tall on Canada too. Resource companies (oil and mining) are hit pretty hard in Canada.
Posted by: Andrey Levin | 16 November 2008 at 03:29 AM
Andrey:
I fully agree with you. I'm surprised that we are not there already.
The delay may be due to our vast social net and smaller real estate bubble, but I also doubt that it will be enough to avoid the obvious.
I'm still on the waiting list for the purchase of a good quality PHEV, but I cannot delay much longer than another 18 to 24 months, because the current excellent Camry will not last forever.
Posted by: HarveyD | 16 November 2008 at 09:03 AM
Canada's Harper has already begun pressure on Obama to immunize tar sands production. The US/Canada national security alliance to produce domestic energy will outweigh the environment issue for the near term.
Posted by: | 16 November 2008 at 09:04 AM