Japanese carmakers have a little situation

Posted on Thursday, 11 October 2012 , 15:10:51 byDan

Filed under japaneseasiansalesecomical-crisischinaJapaneseAsianChina

Japanese carmakers have a little situation


This last period was a real rollercoaster for the Japanese manufacturers due to a lot of events, and factors. Their production process was compromised last year because of the earthquake and the tsunami, because of a nuclear reactor malfunction and to top it up, now, Japan has a political crisis. The dispute between Japan and China over the ownership of a group of East China Sea islands has brought protests, boycotts and even violence and not just in the auto industry, but in everywhere. Japanese carmakers Toyota and Nissan said that last month was the worst since 2008, as their sales have dropped considerably. They have suffered a sales decrease of 49% and 35% respectively and Honda suffered 41% depreciation. To be more precise, the carmaker sold 44.100, 76.066 and 33.931 respectively. For Mazda the situation is even worst. Its Chinese sales have dropped by 35%, the lowest level in the last 19 years. Mitsubishi decreased by 63% and Suzuki registered a 43% decrease in comparison with September 2011. The whole situation should arrange itself because otherwise the effects could have a severe impact on their earnings. Together, Japanese manufacturers have the largest share of the Chinese auto market than any other foreign country. Even so, because of the current situations, they are forced to reconsider the output of their plants. Actually, Honda, Nissan and Toyota want to reduce their Chinese production by almost 50%. Nissan will suspend the night shift and the other two will shorten working hours and slow down production speed. The non-Japanese manufacturers are actually doing better now with their sales. Audi and Kia registered significant sales increases for last month. It is a bit strange, but General Motors announced a decline in Buick and Cadillac deliveries. In the last eight months, the carmaker reported its slowest sales growth.