By on December 9, 2012

Toyota decided to postpone construction of a new plant in Tianjin, China, and is considering the delay of another new plant in Guangzhou, Japan’s Asahi Shimbun writes, quoting unidentified sources. This due to sluggish vehicle sales in the wake of anti-Japan protests over the Senkaku/Diaoyu islands dispute, Asahi Shimbun’s sources said.

The two plants were expected to raise Toyota’s production capacity by 40 percent to 1.3 million units.

Reuters reports the same story, but is less definitive than the Asahi which claims as a fact that Toyota “will set a new construction schedule after examining sales trends in China,” and that Toyota “estimates it will take at least a year to regain their previous levels.” On Friday, another Japanese paper claimed that Toyota expects that it would take more than a year for Chinese sales to recover.

Toyota spokespeople were dismissive on Friday and could not be reached over the weekend.

If the slump in China indeed takes longer, the damage would not be isolated to Toyota. For the last three months, other Japanese manufacturers were similarly effected,

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14 Comments on “Tokyo Paper: Toyota To Delay New Factories in China...”

  • avatar

    I wonder if on my next trip to China, the PRC government would allow me to join in with the crowd and smash up a Nissan GT-R?

  • avatar

    Every time I see a photo of this it seems the gawker-to-smasher ratio is about 10 to 1. Appears to be both orchestrated and feeble.

  • avatar

    Seems to me that the Chinese government’s actions, that for whatever is lost by the japanese automakers, they will loss by an order of magnitude or more of outside capital investment in the short run and a multiple of that when it comes to essential/complex exports. As well as showing the world that once a centralized government with a laisse-faire economy no longer has control, without destroying the laisse-faire, thus meaning the chinese government really doesn’t have controll

    (just as gorbachav thought he had control until he went to watch the first launching of the SU version of the shuttle and realized that a starwars devive was attached instead (radar controlled nuclear power laser on one side and heat seaking missiles on the other (2 for 1 package), luckily it exploded due to complex orbital manuver (largest explosion ever seen in space by man-made object) and the militarization of the space race stopped there, if it had suceeded, we would probably be in a much more scary place, as half the SU leadership wanted to turn Star wars into a national/war footing effort (aka all industrial efforts put into it) and the other wanted it to wind down b/c they had bankrupted themselves, much as we’ve have done.)

  • avatar

    No Japanese are now fraying around in the dark trying to figure out the new up & coning in the PRC. They should have seen the potential for this – they’re a concientious lot the Japs. Communist China has a history of public denunciations. With the U.S. Beijing gets NK to blow hard first. Obama isn’t Nixon/Kissinger – and doesn’t know how to or want to banquet in Beijing.

  • avatar
    el scotto

    Uh, could we leave discussions of the break up of the Soviet Union and the new Chinese leadership to the state department and other people who do that for a living. And stick to talking about cars. This story has “legs” and we’ll probably see it run every time a Toyota get overturned in Beijing. It’ll have twists and turns and who knows how it’ll end.

  • avatar

    some articles suggested this could end up being lose/ lose situation, as these investment dollar will end up else where and middle kingdom lost the opportunity forever.
    Or MK just dont give a damn.
    Nippon should be having an election soon.

  • avatar
    Mr Nosy

    The Chinese Gov’t MAY one day,be able to control/manipulate anti-Japanese sentiment with the finesse of an on/off switch,to its cynical & profitable ends.However,until Japan takes a lesson from Germany,it will likely be subject to increasing political & economic manipulation by emerging Asian countries regarding its past in Asia. Germany is subjected to far less(Except in the case of British comedy-as it’s been institutionalized.)recrimination today,as it has regularly owned up to its past,beyond mere lip service. There might be billions of dollars at stake,but the rest of the world is fooling itself if it thinks China,North & South Korea,The Philippines, and the rest of Asia,will simply just eventually,”get over it & move on”.

  • avatar

    The Japanese automakers earned enough from China and it`s time to move on. I would not invest a single Yen in China until the CCP meets their demise. There are plenty of other Asian countries that would welcome a Japanese automobile factory.

  • avatar
    Polar Bear

    The Chinese have learned/copied/stolen enough from the Japanese now. The Japanese are not needed anymore.This is the next phase of Chinese auto policy, where foreigers are kicked out (so long suckers!) and the Chinese are ready to take over.

    • 0 avatar
      el scotto

      Anecdotal evidence shows that the Chinese don’t get manufacturing process quality control. The most egregious examples seem to be lower quality parts being used to save money while totally ignoring productions specs. They don’t get “the Toyota way” or why things have to be built to specs. Until they understand that foreign manufacturers will still have a huge edge. It’s like a McDonalds cook trying to make French food.

      • 0 avatar
        Polar Bear

        Yes, a lot of the poor quality is deliberate. They know perfectly well the quality is substandard, but they want to cheat and make extra money.

        In China you have suppliers cheating factories, middle management cheating the company, CEOs cheating shareholders, companies cheating customers, and so on. Who can you trust in a system like that? Many people in it wants to get rich quick at any cost, moral or immoral. It is far removed from the honor and loyalty which a company like Toyota is built on.

        The Chinese are clever people, but this kind of dishonest greed is going to limit their development.

      • 0 avatar

        “The Chinese are clever people, but this kind of dishonest greed is going to limit their development.”

        Sounds like we and the Chinese aren’t that much different, after all.

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