Toyota Won't Break 10 Million Barrier This Year

Bertel Schmitt
by Bertel Schmitt

Cratering China sales due to the islands row made Toyota revise its production targets. Worldwide production by the Toyota Group including Daihatsu and Hino “now looks likely to reach around 9.8 million units to 9.9 million units for the calendar year instead of the currently projected 10.05 million units,” The Nikkei [sub] says.

The number is not official, but the Tokyo wire heard from parts suppliers that Toyota has downgraded its production targets.

In August, Toyota had announced plans for 10.05 million cars for the calendar year, which would have meant a 28% year-on-year jump.

After slashing production in China by half this month, Toyota plans to keep output there roughly 30% lower on average, sources tell the Nikkei. Toyota had planned for China sales of over 1 million units in 2012. Now, it looks like it will be less than 900,000.

“Despite all this, the Toyota group is still on course to break the previous production record of 9.5 million units, set in 2007,” says the Tokyo wire. With the reduced output, GM has an ever so slight chance of keeping its 2011 title as world’s largest automaker.

Bertel Schmitt
Bertel Schmitt

Bertel Schmitt comes back to journalism after taking a 35 year break in advertising and marketing. He ran and owned advertising agencies in Duesseldorf, Germany, and New York City. Volkswagen A.G. was Bertel's most important corporate account. Schmitt's advertising and marketing career touched many corners of the industry with a special focus on automotive products and services. Since 2004, he lives in Japan and China with his wife <a href="http://www.tomokoandbertel.com"> Tomoko </a>. Bertel Schmitt is a founding board member of the <a href="http://www.offshoresuperseries.com"> Offshore Super Series </a>, an American offshore powerboat racing organization. He is co-owner of the racing team Typhoon.

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  • INeon INeon on Oct 22, 2012

    I've tried a few times, but can not make heads nor tails of the first sentence of this writing. May I ask that it be clarified?

    • Zackman Zackman on Oct 23, 2012

      iNeon: The first sentence refers to an issue in the East China Sea concerning a group of uninhabited islands known to the Japanese as the Senkakus and to the Chinese as the Diaoyus. Without going into a lot of detail, you can Google the conflict and read up on it. It is affecting the auto industry over there and if more comes from this, it will affect the world's economy. How much remains to be seen. Hope that helps.

  • Zackman Zackman on Oct 22, 2012

    Who cares if Toyota builds only TEN cars? The photo of that Piper or Cessna is worth TEN MILLION BUCKS!

    • Racerxlilbro Racerxlilbro on Oct 24, 2012

      Not a Piper or Cessna - It's a Luscombe, circa about 1946. It was the first metal-skinned, general aviation plane sold in the US.

  • Oldyak Oldyak on Oct 22, 2012

    sad news for a: 'world bland'

  • Blowfish Blowfish on Oct 23, 2012

    Nippon govt is trading a 20 dollar bill for bunch of quarters. Those islands do have oil & gas underneath, but how much can one take it out and leading time is a big unknown? Now is trading for a slow down of selling all cars produced in middle kingdom. Also affecting the tourism trade bilaterally. Noda is like some kids walking up to Bernie Goetz in the NY subway for some money. http://en.wikipedia.org/wiki/Bernhard_Goetz

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