Open

Coming up

Don't miss

Replay


LATEST SHOWS

AFRICA NEWS

Search of Air Algerie crash site continues

Read more

MEDIAWATCH

Sarkozy, Hollande and the scooter wars

Read more

MEDIAWATCH

Confusion online over Air Algérie flight

Read more

THE WORLD THIS WEEK

The World This Week - July 25th, 2014 (part 2)

Read more

THE WORLD THIS WEEK

The World This Week - July 25th, 2014

Read more

REPORTERS

Halal tourism on the rise

Read more

ENCORE!

Tunisia's Carthage International Festival turns 50

Read more

FRANCE IN FOCUS

WWI Centenary: the battle for Verdun

Read more

THE BUSINESS INTERVIEW

When big companies want to do good

Read more

  • Photos: Youths clash with police at banned Gaza protest in Paris

    Read more

  • Limited Gaza truce extended until midnight

    Read more

  • Bodies of all Air Algérie crash victims to be brought to France

    Read more

  • Germany's Tony Martin wins 20th stage of Tour de France

    Read more

  • US evacuates embassy in Libya amid militia clashes

    Read more

  • Kerry in Paris for new round of Gaza ceasefire talks

    Read more

  • Nibali rides serenely toward a place in Tour history

    Read more

  • Video: 'Lack of security' at MH17 crash site, FRANCE 24 reports

    Read more

  • In pictures: Devastation, debris at Air Algérie crash site

    Read more

  • Washington Post reporter and his wife arrested in Iran

    Read more

  • French families grieve for Algerian plane crash victims

    Read more

  • Lithuania’s Navardauskas wins 19th stage of Tour de France

    Read more

  • LA Times wipes France off the map in air crash infographic

    Read more

  • Fans electrify the mood as Tour de France crosses the Pyrenees

    Read more

  • French lawyer files complaint against Israel at ICC

    Read more

  • Protest against Gaza offensive turns deadly in West Bank

    Read more

  • Halal tourism on the rise

    Read more

Business

Toyota sees 12% drop in annual production

Video by FRANCE 2 , Kate WILLIAMS

Latest update : 2009-03-03

The world's biggest carmaker, Toyota Motor Co, expects a huge production drop in the next year. It announced over the weekend that all temporary workers were being laid off.

AFP - Sales of new vehicles in Japan plunged last month, figures showed Monday, underlining the industry's deepening woes as the economic downturn causes a slump in consumer spending.
  
Toyota Motor, the world's biggest automaker, said it expected its production to fall by about 12 percent in the next business year, starting April, in response to the sharp fall in demand.
  
Car, truck and bus purchases dropped 32.4 percent last month from a year earlier to 218,212, the steepest decline for February since 1974, the Japan Automobile Dealers Association reported.
  
The association's director, Takeshi Fushimi, said consumer confidence was worsening and the outlook was highly uncertain.
  
"We absolutely cannot see the future," he told reporters.
  
The seventh straight year-on-year decline comes as Asia's biggest economy struggles to cope with its deepest recession in decades.
  
"The downturn in the Japanese market is accelerating," said Mamoru Kato, auto analyst at the Tokai Tokyo Research Center.
  
"With the economic crisis, people are worried about their jobs and pay cuts. People are more cautious about spending and consumption is cooling, as reflected in the new car sales figure," he said.
  
Japan's motor manufacturers have suffered a dramatic reversal in fortunes in recent months as demand falls sharply in recession-hit markets in the United States, Europe and elsewhere.
  
Toyota has told its suppliers it expects to manufacture an estimated 6.2 million vehicles next year, down from 7.08 million this year, a company spokeswoman said, asking not to be named.
  
Toyota ended General Motors' 77-year reign as the world's top selling automaker in 2008, but it has not been immune to the global economic downturn and expects its first ever loss in the current financial year to March.
  
Toyota's domestic vehicle sales fell 32.0 percent last month while Nissan suffered a 35.2 percent drop and Honda saw a 21.1 percent decline, the Automobile Dealers Association said.
  
But experts said falling oil prices could tempt some buyers of larger cars back into the market.
  
"A general improvement in the economy next year or the following year should also drive up auto sales," said Kato.
  
The global economic downturn has taken a severe toll on the finances of Japanese automakers, which rely heavily on exports.
  
Alongside Toyota's projected loss Nissan also expects to end in the red and Honda has seen a plunge in earnings.
  
The makers are pinning their hopes on environmentally friendly technologies to stay ahead of their foreign rivals.
  
Nissan Motor said Monday that it was considering building a plant in Portugal to make lithium-ion batteries for its electric cars that are set to hit the European market in coming years.
  
Mitsubishi Motors meanwhile said it had reached a basic accord with France's PSA Peugeot Citroen to jointly build electric cars for the European market.
  
Mitsubishi will be in charge of manufacturing the vehicle, which will be sold under the Peugeot and Mitsubishi brands from late 2010 or early 2011.

Date created : 2009-03-03

COMMENT(S)