Toyota takes a Hit
Toyota the world’s largest car manufacturer endured a treacherous a year; it had to recall a number of vehicles for brake related issues. Toyota’s recalls ignited a media frenzy and customer panic as the brake related issue had caused a few major accidents particularly with the Hybrid Prius Model. As well as the Prius many other models were recalled for precaution, all this negative publicity has not done Toyota any good.
China has been a growing market for automotive manufacturers this year, along with Nissan and Honda, Toyota also produced a record number of vehicles for the Chinese market, but even that did not prevent Toyota from producing 12.5% fewer vehicles. Toyota’s October vehicle production dropped to 687,660 units, 62,124 of those were for China, an increase of 4.4% year on year.
The downfall in production for Toyota is further highlighted when you look at its direct competitors Nissan and Honda. Honda Motor Co. produced 305,406 vehicles worldwide in October, up 1.4%; Nissan produced 363,227 vehicles up 11.6%.
Toyota’s most worrying market is the US; it has to deal with lagging sales which are the consequence of the recalls. The majority of Toyota’s recalls were for US models, and the American automotive industry is very sensitive, even more so during a downturn. UK car buyers are also quite cautious about buying a new Toyota in Dorset, not helping Toyota’s production levels.
Mazda the smaller of the Japanese car manufacturers was also boasting an increase of 4.9% for its car productions, year to date for October. Meanwhile Honda and Nissan are battling it out for the title of Japan’s No. 2 automaker in annual vehicle production.
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