Toyota, Nissan reduced global output in October 2008

Toyota Motor Corp. and Nissan Motor Co. cut global production last month as the intensifying financial crisis stifled car sales.

Toyota's output fell 15 percent to 700,146 vehicles, and Nissan's production dropped 18 percent to 278,581 vehicles in October, the companies said in separate statements Thursday. Honda Motor Co. said global output rose 1.4 percent to 368,245 units.

Toyota said last week it will almost halve U.S. output of Sienna minivans, slow the speed of one of two assembly lines in Georgetown, Ky., and extend its Christmas-New Year shutdown at U.S. plants by two days. Nissan on Oct. 31 said it will cut global output by at least 200,000 vehicles by March 31.

Japanese carmakers "are facing a severe situation in which supply is not being balanced by demand," said Tatsuya Mizuno, Tokyo-based director at Fitch Ratings, which Wednesday downgraded Toyota's debt rating to AA. "More adjustments will be necessary."

Toyota's domestic output fell 17 percent to 341,948 vehicles, and its overseas production fell 13 percent to 358,198 units. Toyota's New United Motor Manufacturing Inc. joint-venture plant with General Motors Corp. will also eliminate indefinitely one of two production shifts for Tacoma small pickups from Jan. 5.

On Thursday, management and trade unions said Toyota will close a factory in northern France for two weeks during December and will slash production from the plant next year due to falling demand.

Management at the factory, which produces the small Yaris model near the town of Onnaing, told employees Monday of the new working arrangements and plan to cut output.

Output will halt from Dec. 22 to 26, Dec. 29 to Jan. 2 and March 2 to 6 and daily output will be cut from 1,098 vehicles at present to 879 on Feb. 2.

Honda on Nov. 21 said that it is trimming production plans at U.S. factories by 18,000 more units, bringing the total cuts to 50,000 since August. Honda's overseas production dropped 0.2 percent to 242,111 vehicles.

Honda will also cut output at a plant that makes Accord sedans in Saitama Prefecture by 40,000 units from this month, as well as production of models including Civic compacts and CR-V sport utility vehicles at a factory in the U.K. by 21,000 units from February.

Nissan's October overseas production dropped 22 percent, and its domestic output fell 11 percent.

Source: The Japan Times