Toyota, Honda Slash Global Production as Recession Cuts Demand

Feb. 25 (Bloomberg) -- Toyota Motor Corp., Honda Motor Co. and Nissan Motor Co., Japan’s three-largest carmakers, cut global production last month as the recession and a credit crunch damped demand for new automobiles.

Toyota’s output fell 43 percent to 413,285 vehicles in January. Honda’s production dropped 33 percent to 226,551 vehicles, the most since at least 1999, and Nissan’s slid 54 percent to 145,286 units, the companies said separately today.

Japanese carmakers are slashing output and profit forecasts as the slowing economy and rising unemployment in their largest markets deters consumers from buying new vehicles. Toyota’s domestic output is being cut in half this quarter, compared with a year earlier, as exports plunge and it heads for its first operating loss in 71 years.

Japan’s exports plunged 46 percent in January, resulting in a record trade deficit, the Finance Ministry said today. Vehicle sales in Japan fell the most in 35 years last month. Industrywide auto sales in the U.S. may hit a 27-year low of 10.5 million units this year, according to a forecast from General Motors Corp.

Toyota, which tripled its loss forecast earlier this month, said Japan production fell 40 percent to 209,224 and U.S. production fell 65 percent to 38,245 units.

Honda is widening production cuts in North America by 29,000 vehicles to 1.26 million units for the year ending in March, down from an initial goal of 1.47 million. Japan production is also being cut to 1.15 million units, compared with an original plan for 1.31 million.

Nissan’s latest forecast estimates domestic production will drop 16 percent to 1.06 million vehicles in this fiscal year. Last month the Nissan said its U.S. plants will build vehicles only four days a week indefinitely.

Mazda Motor Corp., Japan’s second-largest car exporter, said global production fell 63 percent to 45,548 units in January.

Fuji Heavy Industries Ltd., the maker of Subaru-brand cars, said global production fell 32 percent to 31,654 vehicles in January. Suzuki Motor Corp., Japan’s second-largest minicar maker, said global production fell 20 percent to 177,085 units.

Source: http://www.bloomberg.com/apps/