Japan's auto production down 21.6%

[dailyforexnews]

Japan's auto industry produced 830,140 units in September, 21.6 percent less than the same period of 2008, according to statistics released on Thursday by the Japan Automobile Manufacturers Association.

In a sign of the lack of investment in businesses under current economic conditions, production in September of trucks fell by 30,7 percent, while bus production dropped by 26.3 percent. Cars fared slightly better, posting a fall of 20.1 percent.

It was the ninth consecutive month that production has fell year on year in Japan's auto industry.

Demand within Japan, however, posted a slight rise of 0.2 percent when compared with September last year. Demand for cars rose by 4.2 percent, while demand for trucks dropped by 38.8 percent, and buses 28.8 percent.

Production in the first half of fiscal 2009, from April to September, dropped by 33.5 percent, with 3,855,856 units produced this year, compared to 5,800,204 units for the same period in 2008.Exports for the first half of the fiscal year, however, decreased by 51.5 percent, showing the toll the global economic downturn is taking on the Japanese auto industry.

Demand for Japanese automobiles has fallen both at home and abroad since the credit crisis, which started in the United States, started to take its toll on the global economy.

 

[bobneedham]

well, it's probably because the US is Japan's primary market. It's not only the auto industry being affected, most of electronic sector is experiencing the downturn

 

[Pinalli]

yea... even the Bank of Japan, as well as a bullish stock market has a reason to unload the low-yielding safe-haven. The Bank of Japan had said in that emergency meeting that it will allocate 10 Trillion Yen, roughly 114 Billion Dollars (US), to a short-term lending program at a fixed rate of .1%. The program is viewed as an alternative to the quantitative easing policies employed in 2001 which saw interest rates drop to zero resulting in a flood of cash entering the markets.