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Toyota China sales cut in half by island row: report
by Staff Writers
Tokyo (AFP) Oct 5, 2012


Sales of Toyota cars in China plunged by 50 percent on-month in September amid an anti-Japan backlash over disputed islands, a report said Friday.

The Japanese auto giant -- the world's largest car firm by sales in the first half of this year -- shifted 75,000 units in August, but moved only half that number last month, the Yomiuri newspaper said, citing a company source.

A Toyota spokesman in Tokyo would not confirm the numbers, saying only that official figures for September sales in China would be released on Tuesday.

A festering row over the Senkaku islands in the East China Sea, controlled by Japan but claimed by China, which knows them as the Diaoyus, has badly affected trade between Asia's two biggest economies.

Japanese factories and businesses across China closed or scaled back operations in September over fears they or their workers could be targeted by mobs protesting against Tokyo's nationalisation of the isles.

Toyota shuttered its factories in the country from September 26 over the heightened tensions, leaving them closed for China's national week celebrations, but will reopen them on Monday, the Tokyo spokesman said.

Late last month both Toyota and its Japanese rival Nissan said they would cut Chinese production because demand for Japanese cars had been hit by the row.

On Friday Jiji news and the Nikkei business daily said Toyota's October production in China could be slashed by about 50 percent from planned levels.

Toyota has nine production sites in China -- three assembly plants each in Tianjin in the northeast, the southern city of Guangzhou and central Sichuan province.

The company has big plans for the growing auto market in China, where it produced 800,000 vehicles in 2011 and maintains a network of 860 dealers.

A report Friday said some big Japanese insurers had stopped providing coverage against riots in China in the wake of last month's unrest, in the latest example of the business knock-on from the dispute.

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Japan auto giants to halve Chinese output: report
Tokyo (AFP) Oct 8, 2012 - Japan's top three carmakers will halve production in China following a sales slump there sparked by a backlash over a territorial row between Tokyo and Beijing, a report said Monday.

Toyota, Honda and Nissan all plan to resume output at roughly half their normal levels on Monday when workers return to their jobs after the end of China's week-long National Day holiday, the Nikkei business daily said.

Nissan will suspend its night shift and operate its Chinese factories only during the day "for the time being", while Toyota and Honda will cut operating hours and run production lines at slower speeds, the daily said.

If the production cut continues for a month, each of the three firms is likely to suffer a reduction of 30,000 units to 40,000 units, the Nikkei said.

Sales of Toyota cars in China reportedly plunged by 50 percent in September from August due to the row over disputed islands in the East China Sea, which are controlled by Japan but claimed by China.

The dispute has badly affected trade between Asia's two biggest economies.

Japanese factories and businesses across China closed or scaled back operations in September over fears they or their workers could be targeted by mobs protesting against Tokyo's nationalisation of the islands.

Japanese carmakers plan to carefully monitor the impact of the protests on their sales, fearing that anti-Japan sentiment could instantly flare up if any new developments unfold in the island row, the daily said.



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