Auto Knight

Toyota And Honda Massively Cut Output

by Darren

In news that should come as no surprise to anyone, Honda and Toyota have both announced that the global financial crisis has put a big dent in their sales figures, causing them to cut output. Toyota announced that their global output has now hit the lowest level in 23 years. Toyota produced 358,573 vehicles, a 53 percent decline from last year.

Honda fared no better than Toyota. The announced last month sales of 190,680 vehicles. That’s a decline of 43 percent from 2008.

Tighter credit is cutting demand and it’s being felt by Japan’s two largest auto manufacturers, as it is by car companies worldwide. Consumers aren’t getting approved for auto loans like they used to in the past, and they don’t have the money to buy cars using lump sum payments.

Both Toyota and Honda have announced a more aggressive entry into the hybrid vehicles, one segment that still appears to be growing. But that’s no guarantee of success.

Honda tamped down production by 48% last month due to the decline in sales revenue.

Toyota reduced its domestic production by 63% last month. They’re expecting to announce their worst operating loss in company history.