Report: Japan Car Giants To Slash China Production

Japanese newspaper Nikkei reported Monday that carmakers Toyota, Nissan and Honda will cut production in China by about half, a sign of the economic fallout from the ongoing diplomatic dispute between Japan and China, though neither company has confirmed the report. From Reuters:

Sales have plunged at Japanese car makers since violent protests and calls for boycotts of Japanese products broke out across China in mid-September over the Japanese government’s purchase of a group of disputed islands in the East China Sea from their private owner.

Nissan will suspend the night shift at its passenger car factories in China and operate only during the day, the business daily said. Nissan has two passenger car factories in China, in Huadu and Zhengzhou, with two lines each. A Nissan spokesman declined to confirm the report.

Toyota and Honda plan to cut China production to about half normal levels by shortening working hours and slowing down the speed of production lines, the Nikkei said without citing a source.

A Honda spokeswoman said she was checking the report.

Meanwhile, Xinhua News reports that a spokesman for China’s Foreign Ministry said that Chinese marine surveillance ships and fishing boats would continue their patrols in the waters near the Diaoyu Islands.

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