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Toyota to halt car exports to China

Publication Date : 27-09-2012

 

Toyota Motor Corp. announced yesterday it will temporarily suspend exports of cars to China due to a drop in new car sales in that country since a rise in anti-Japan sentiment over the government's purchase of some of the Senkaku Islands (known in China as Diaoyu Islands) in Okinawa Prefecture.

Toyota, Nissan Motor Co. and other car manufacturers also have started or are considering reducing production at factories in China, reflecting the widening impact of the rift between the two countries on the industry.

Toyota's core export to China has been Lexus luxury-model cars, which are produced at two factories in Japan. The company exported about 89,000 vehicles in 2011. In July alone, it exported 13,000 vehicles to China.

Toyota also is considering reducing production at its factories in China, through such measures as offering more days off to employees around the upcoming National Day, Monday, and eliminating the night shift. It would continue these steps through October while it observed the sales situation.

Among other major automakers with bases in China, Nissan was to give its employees more days off today at factories in Guangdong and other provinces, and resume production Oct. 8 after the vacation.

Honda Motor Co. was considering slashing working hours at its factories in China, while Suzuki Motor Corp. has already reduced its two-shift workday to one day shift.

Mazda Motor Corp. decided to give two more days off to its employees for the upcoming holiday.

Major Japanese automakers largely resumed normal operations Monday at their factories in China, which had been suspended since Sept. 17 due to an escalation in anti-Japan rallies following Japan's purchase of three of the Senkaku Islands.

 

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