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Japan car lobby group chief says coronavirus having big impact on sales, output


A coronavirus pandemic is having a big impact on the automotive manufacturing industry, the head of a Japanese lobby group said, adding that its members will need to keep adjusting production, amid a projected slump in demand.

"The truth is, it was shocking just how much the world could change in an instant," said Akio Toyoda, who also leads Japan's biggest automaker, Toyota Motor Corp.

"At this point, we can't foresee what's ahead for automakers," added Toyoda, the chairman of the Japan Automobile Manufacturers Association.

In separate announcements last week Toyota, Nissan Motor Co and Honda Motor Co said they would temporarily halt North American factories to protect worker health and amid an expected hit to demand.

They also suspended production at several plants in Europe, with Honda closing its facility at Swindon in Britain until at least April 5.

Despite the uncertainty, Toyoda said he did not expect the virus outbreak to hit spending on research into advanced technologies, such as autonomous driving and electric cars.

© (c) Copyright Thomson Reuters 2020.

©2020 GPlusMedia Inc.

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It will be interesting to see the coming month’s demand for new cars.I’d guess that people don’t flock to to car showrooms in recessions.

2 ( +3 / -1 )

Lockdowns = no need for move.

Repair parts urgent need.

0 ( +0 / -0 )

Time for some bailouts!

-3 ( +0 / -3 )

The car industry was already in a slump, not only because of the recession in Japan and globally.

The car manufacturers keep ignoring that what they produce now is crap. Compare any car build today with a car build before 1980-1985 and tell me, which one you want. 

I can not see the difference between any car models. Few, keep their identity, like Aston Martin, Ferrari but who can tell the difference ( without the logo's ) between a Nissan, Toyota, Hyundai, Renault, Fiat and even, I am sorry to say, a Mercedes, Audi or BMW. 

I was a car freak,  I still own some pretty exceptional cars, but for now, only Aston Martin and Ferrari can move me. While I used to also like Alfa Romeo, Mercedes, BMW but the last 2 made their last nice cars over 20 years ago. Alfa made a great 8C and 4C but they don't know how to sell.

-3 ( +0 / -3 )

Disruption to the global supply chain is a major factor, Japanese manufacturers can't obtain parts from cheap suppliers in China and SE Asia, and local parts makers are unable to tool up and scale up in time.

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wanderlustToday  02:02 pm JST

Disruption to the global supply chain is a major factor, Japanese manufacturers can't obtain parts from cheap suppliers in China and SE Asia

Japanese domestic OEMs supply the vast majority of parts for cars produced in Japan. In fact it's rare for a domestic Japanese model to use parts from OEMs in other countries unless it's a model that is also available in that region. Also the OEMs Japanese manufacturers use are either domestic Japanese OEMs that have factories in other countries or a foreign OEM that must meet stringent criteria to obtain parts production contracts and produce bespoke parts for models not available in Japan (ie: Acura, US market Toyota models like the Tundra etc). You make it sound like Toyota, Honda etc hand parts production contracts to the cheapest available OEM and rely solely on them when they merely produce the same parts in tandem with their domestic Japanese OEMs.

1 ( +1 / -0 )

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