Despite declining Chinese sales, Japanese JVs refuse to cut production

Gasgoo.com (Shanghai October 11) - Following over a month of Chinese demonstrations protesting the disputed Diaoyu Islands, reports of Japanese manufacturers cutting down on production in the country have begun circulating through the media. However, according to a report appearing on the Beijing Youth Daily today, only FAW Toyota confirmed that it will be reducing its production volume this month. The other major Sino-Japanese joint ventures denied receiving orders to cut or halt production.

FAW Toyota has revised its annual sales target for the year from 50,000 units to 30,000 units. The joint venture will cut its production volume for October by one half. Whether or not the production cut will be carried over to November has yet to be decided.

By contrast, Guangqi Toyota, Dongfeng Nissan, Guangqi Honda and Dongfeng Honda have not announced plans to reduce production. Guangqi Toyota, which has previously managed to sustain a strong performance over the year, has seen its sales fall over the last two months. The JV has not modified its sales target for the year.

In response to declining sales, Dongfeng Nissan closed operations for three days prior to the National Day holiday. However, the JV's production has already resumed to normal. Sources from Dongfeng Nissan admitted that the protests severely affected its sales, stating that its current sales volume is around 60 percent of what it was in the first half of the year.

Guangqi Honda has also not modified its sales target for the year. Dongfeng Honda confirmed cutting down on production shifts, but has also not announced any cuts to its total production volume.