Nissan and Toyota cut down production in China 0

Nissan and Toyota, the two biggest Japanese automakers are cutting back production in their neighbouring country, China. These plans have come into force three days earlier than originally expected before the holidays.

A huge slowdown in the country’s biggest car market is behind the both company’s decisions. There have been anti Japanese protests around China which had previously caused a slowdown in production days earlier. Toyota has stated that the recent announcement is them trying to actively counter the situation in China. Both company’s shares have fallen along with Honda, another Japanese car maker.

It comes shortly after a wave of anti-Japanese protests across China that led to a halt in production for several days at many Japanese companies. The protests were about island in the East China Sea and who were the rightful owners.

There has been no announcement regarding the figures. No one yet knows how much production will be cut back by.

Toyota has said that one plant would remain safe and continue work as normal. A joint venture with in China at one of it’s production plants would not continue. Once plants open back up they will operate in a different manner Toyota said. They stated that production would match the situation in China. That could mean one shift at the plant instead of two. Suzuki is also set to follow suite and reduce shifts at their factory.

This will come as devastating news to the Chinese car industry. Japan is China’s biggest partners when it comes to trading. The problem certainly lies further beyond that of the car industry. Other Japanese firms are experiencing problems. Retailers have also become part of the problem with the islands issues becoming more and more of a problem. Japanese car showrooms have been ruthlessly attacked.

The islands in question are Senkaku and Diaoyu which are currently controlled by Japan. China and Taiwan believe that they should be in control.

China’s economy has been growing over the past few years but it is currently experiencing a major slowdown. The economy is seeing a major slowdown with the car industry as a whole suffering.

How will Nissan and Toyota cope with plant closures and the ongoing rivalries between China and Japan?