Japanese automakers slash production amid weak demand

TOKYO: Japan's top automakers slashed their production in August amid weak US demand, led by Toyota Motor Corp. which curbed its global output by 15.5 percent, the companies said on Thursday.

Toyota, which has suspended some production lines in the United States for three months as a result of the market downturn, said its overseas output dropped by 16.4 percent in August from a year earlier to 306,299 vehicles.

Domestic production fell 14.7 percent to 320,446 vehicles, said Japan's top automaker, which is vying with Detroit giant General Motors to be the world number one. Toyota's global output was 626,745 vehicles in August.

Honda Motor saw 295,541 vehicles roll off its production lines in August, down 4.8 percent from a year earlier, led by double-digit declines in both the United States and Japan.

Nissan Motors' global production dropped 5.5 percent from a year earlier to 252,609 vehicles, while Mitsubishi Motors' output slumped 17.1 percent to 90,987 vehicles.

Mazda Motor, however, hiked output by 4.1 percent to 97,242 vehicles.

Japan's automakers have enjoyed brisk sales in the United States, particularly of their fuel-efficient vehicles, but the economic slump there has eroded sales, forcing them to rely on faster-growing emerging markets.

Their domestic market is also in the doldrums due to a weak economy and signs that Japanese are losing interest in owning cars, particularly in big cities.