Toyota Motor Corp., Honda Motor Co. and Nissan Motor Co., Japan's three-largest carmakers, all cut global production in December as the recession and a credit crunch dampened demand for new automobiles.
Toyota's output plummeted 25 percent to 479,027 vehicles in December. Honda's production dropped 7.5 percent to 277,294 vehicles, while Nissan's plunged 36 percent to 176,174 vehicles, the companies said separately Wednesday.
Japanese carmakers are slashing output and profit forecasts as the global recession and concerns of job losses deter consumers from purchasing new cars and sport utility vehicles. Honda on Tuesday widened production cuts in North America by 29,000 vehicles and plans to cut all of its 3,100 temporary workers in Japan in April.
"Sales in all the major auto markets of the world are going down, and in some areas they're going down quite fast," said Edwin Merner, president of Atlantis Investment Research Corp. in Tokyo, which manages $3.1 billion. "There's no recovery in sight."
Toyota's sales in the United States, traditionally its most profitable market, plunged 37 percent in December. 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., the biggest U.S. automaker.
Toyota, which last year ended GM's 77-year run as the world's largest automaker, reported its first drop in annual vehicle sales in 10 years.
Honda's sales in the U.S., its biggest market, decreased 35 percent in December.
The Tokyo-based company is cutting Japan production by 163,000 units for the current business year and is slashing North American output by 204,000 vehicles.
Mazda Motor Corp., Japan's fifth-largest carmaker, said global production fell 41 percent to 68,111 vehicles in December. Mazda is cutting output in the second half of the business year by 173,000 vehicles.
Suzuki Motor Corp., Japan's second-largest minicar maker, said production fell 23 percent to 161,005 last month. Domestic output fell 19 percent to 87,906, the company said.
Nissan axes 110 in U.S.
Nissan Motor Co., Japan's third-largest automaker, plans to eliminate about 110 U.S. jobs as it adjusts regional sales, marketing and design operations because of slowing sales.
Nissan North America, the U.S. arm of the Tokyo-based company, will reduce the number of regional sales offices to seven from 11 and consolidate design work at a San Diego studio, according to an e-mailed statement Tuesday.
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