Japan Production Reaches Lowest Point in Four Decades
This means that production in this month fell 20.4 percent when compared to the same month of 2007, the aforementioned source added. In addition, this is the biggest drop since 1967 in a market dominated by large automakers such as Toyota, Honda and Nissan.
And this should not amaze anyone because these figures are somehow understandable in a market massively hit by the financial recession, with companies begging for financial support from their governments. The United States automotive world is probably the best example in this matter as the group of Detroit carmakers, also known as Detroit 3, asked the local government to provide financial aid by the end of the year. Otherwise, bankruptcy could remain the only option, General Motors and Chrysler warned several times.
And getting back to the Japanese industry, the country's number one carmaker Toyota started feeling the recession a few months ago when it first admitted that helping the Detroit 3 is a must for all carmakers involved in the US automotive world. Basically, Toyota claimed that in case GM and Chrysler file for bankruptcy, the rest of the companies would be affected as well, especially due to the fact that dealerships, part suppliers and production facilities may bite the dust, too.
Last week, Toyota reported the first operating loss in four decades, with rumors claiming that the Japanese carmaker may withdraw from Formula 1 due to similar financial problems.