Japanese Automakers Cutting China Car Production by 50%

Drama continues between Japan and China due to a territorial dispute they are having resulted in ongoing anti-Japanese protests. These protests include boycotts of Japanese products all over China and profit margins have dropped sharply for Japanese businesses including Toyota, Nissan and Honda. Because of this production is expected to be dropped by half in China which means that not only is the boycott going to affect Japan, but Chinese autoworkers will feel the sting as they lose their jobs.

Nissan is currently planning to cut the night shifts at two of their Chinese plants. Toyota and Honda are also reducing their production in China by cutting back on work hours and slowing down their production lines. This information is not confirmed by the automakers at this time, but is coming into the American news channels through Nikkei newspaper.

Automotive News reports Japanese manufacturers are set to cut production in China by half. Toyota, Nissan and Honda have seen sales fall off by steep margins in the People’s Republic after a territorial dispute between Japan and China resulted in anti-Japanese protests. Sales of Japanese goods have declined amid calls for boycotts all over China. As a result, Nissan is currently planning to halt the night shift at its two Chinese facilities. Toyota and Honda, meanwhile, will reduce production by cutting back work hours and slowing production lines. The news comes courtesy of a report in the Nikkei newspaper, but has not been confirmed by the manufacturers themselves.

While Nissan, Honda and Toyota have been experiencing a drop in sales though, other automakers seem to be coming out ahead due to the issues between the countries. Sales are up 15% in China for Hyundai Motor Co.’s when they sold 84,188 vehicles last month. Volkswagen’s Audi sales have been boosted by 20%, Mercedes-Benz by 10% and BMW by a whopping 55%. None of this seemed to have affected American automakers one way or the other at this point.

Source Auto News

Author: Jon Rogers

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