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Japan April Output Dips 60 Percent

The March 11 disaster which struck Japan wreaked havoc in the local automotive industry, one of the most advanced on the planet. Fearful of releasing the production numbers for the month of April, the one that followed the disaster, the Japanese automakers have finally done so, and the results are disastrous.

According to Bloomberg, citing a report by the Japan Automobile Manufacturers Association, the numbers for the month of April show a decrease in production of some 60 percent, the total number of cars built last month being 292,001 units. All the major players on the local market posted huge drops.

The biggest was recorded by Toyota, whose production dropped by a staggering 78 percent to 53,823 vehicles. That's the biggest drop in production Toyota ever experienced in the past 35 years.

Earlier this week, Japanese authorities have announced, so far unofficially, that the government will be financially supporting the auto industry by creating a $617 million fund which is to be used to help the local parts suppliers get back on their feet.

"The East Japan Great Disaster seriously damaged supply chains of auto parts makers, and we have been discussing possible financial support for them," a Japanese official was quoted as saying by AFP. "Our negotiation is in the final stage. The size is likely to be as big as 50 billion yen."

As for the automaker, they all announced most of the production has been resumed, even if some plants and the production of some models will continue to be affected, in some cases until the end of the year.
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About the author: Daniel Patrascu
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Daniel loves writing (or so he claims), and he uses this skill to offer readers a "behind the scenes" look at the automotive industry. He also enjoys talking about space exploration and robots, because in his view the only way forward for humanity is away from this planet, in metal bodies.
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