JAPAN: Toyota cuts Lexus output after China troubles
A Lexus RX SUV on the Kyushu line (file photo: Graeme Roberts/just-auto.com)
According to the Nikkei business daily, Toyota will reduce output at its key Lexus factory in Kyushu, Fukuoka Prefecture. Daily production will be lowered about 20% from the current 1,300 units to roughly 1,000 indefinitely. Affected models include the ES, a sedan sold exclusively outside Japan and the compact CT 200h hybrid hatchback.
For now, Toyota plans to rely on local inventory for sales in China. Some of its Chinese dealerships were damaged in the recent demonstrations, including some set on fire. A company official said sales were down about 30% compared with before the recent flare-up of a long-running territorial dispute which shows no sign of ending soon.
But, as the protests appear to be quietening down, Toyota hopes to return production to normal quickly.
The operator of the Fukuoka factory, Toyota Motor Kyushu, built 302,000 vehicles last fiscal year, with 22% exported to Asia, mainly China. The subsidiary may fall short of the 350,000-unit production target for this fiscal year due to the output cut, the Nikkei noted.
Other Japanese automakers, including Nissan Motor and Honda, export a limited number of vehicles to China so their domestic production is not expected to be impacted significantly. A Honda official said that the effect of the protests on domestic output would be negligible.
Toyota also has Chinese production JVs including one with Guangzhou, also a local Honda partner.
The week's industry highlight undoubtedly was the Geneva show. I wasn't there so, without further ado, let me refer you to our cleverly packaged coverage here and especially the comprehensive reviews ...
The media days for the 2013 Frankfurt Internationale Automobil-Ausstellung (IAA) are 10 & 11 September. Each of the following vehicles is a world premiere at the show....
Details of concepts and new models which made their global debuts on Saturday 20 April at Auto Shanghai's media preview day....
Multiple concepts and new models are making their global debuts at the New York auto show. Public days are 29 March to 7 April....
Magna has announced that its Magna Electronics operating unit has started a new automotive camera production line at its Zhangjiagang plant in China....
Toyota Motor Manufacturing Indonesia (TMMI) started up operations at its new USD340 million assembly plant in Karawang in West Java in mid-March, producing the Etios Valco 1.2L small hatch-back....
New vehicle sales in the Philippines increased by over 35% to 14,332 units in February, from 10,591 units a year earlier, according to member data jointly released by the Chamber of Automotive Manufac...
- Kia K900 knocks on big brands' door
- Daimler - Q2 results insight
- Global light vehicle market developments
- VEHICLE ANALYSIS: 2015MY Mitsubishi L200 Barbarian
- THE WEEK THAT WAS: Results season again
- Jaguar Land Rover buys British classic cars hoard
- New alloy developed for new Jag
- JLR China cuts prices amid anti-trust probe
- Tata Motors to assemble in Venezuela
- Union puzzled no buyer for Unipart Automotive