12 automakers' FY 2008 output to be cut by 2.1 mil. units

TOKYO, Dec. 13 Kyodo - Japan's 12 major car and truck makers have decided to slash their global
production by more than 2,113,400 units in fiscal 2008 through next March amid
sagging sales, a Kyodo News tally showed Saturday.
The scale of planned production cuts by the 12 manufacturers has expanded by
over 210,000 units from the previous tally as of Nov. 30, underscoring
deteriorating business conditions in the auto industry amid the global economic
downturn.
Listed automakers are expected to revise their earnings forecasts downward for
the current business year.
Mazda Motor Corp. announced Friday it will reduce domestic auto production by
more than 148,000 units in fiscal 2008, adding around 100,000 units to its
earlier projection.
Honda Motor Co. said the same day that it will slash auto output in North
America by 119,000 units in the December-March period, trimming its total auto
production worldwide in fiscal 2008 by 260,000 units from its initial forecast.
A recent sharp appreciation of the yen against the dollar, coupled with
slumping sales at home and abroad, will likely erode the automakers' profit
further, observers said.
==Kyodo
2008-12-13 21:31:55