Japan's January Carmageddon: Poof Goes The Dragon

by Bertel Schmitt

Published: February 25th, 2009

japan s january carmageddon poof goes the dragon

All day, Japanese carmakers have been issuing January production and sales numbers. They are horrible. Three makers report production reductions of around 60 percent. Mazda and Mitsubishi reported export reduction of over 70 percent. There is a bloodbath in the making in the land of the cherry blossom.

Honda posted year-on-year falls in domestic production and sales, exports and overseas output in January, the Nikkei [sub] reports. Domestically, production fell 23 percent to 77,224 vehicles and sales slid 23.4 percent to 34,160 units, both marking the third consecutive month of decline. Exports dropped by 46.3 percent to 32,934 units and overseas production tumbled 37.9 percent to 149,327 vehicles, both down for the fourth straight month. Compared to others, Honda is doing fairly well, especially due to its burgeoning motorcycle business in the 3rd world. And that was the good news . . . .

Mitsubishi Motors’ Japanese domestic output in January plunged 65 percent on the year to 25,392 units, marking the third straight month of decline, the Nikkei [sub] says. Mitsubishi Motors’ sales in the home market shrank for the 17th consecutive month, dropping 36.3 percent to 9,663 units. Exports tumbled 77.4 percent to 12,936 units, for the third straight month of decline. Overseas output retreated 35.3 percent to 27,947 units, down for the 11th straight month.

Mazda’s January domestic production evaporated 66.2 percent from a year earlier to 31,130 units, the third consecutive month of decline. This according to the Nikkei [sub]. Mazda exported 20,207 vehicles in the month, down 72.1 percent and also the third straight month of decline. Domestic sales fell by 29.1 percent to 14,953 units and overseas production plunged 52.2 percent to 14,418 units, both down for the fourth straight month.

Toyota‘s Japanese domestic output plunged 40.3% year-on-year to 209,224 units, marking the sixth straight month of decline, the Nikkei [sub] writes. Toyota’s January exports plunged 56.2% to 91,209 vehicles, the fourth consecutive month of decline. Domestic sales fell 23.4% to 83,311 units and overseas production fell 44.8% to 204,061 units, both down for the sixth straight month.

Nissan’s Japanese domestic output cratered 59% year on year to 47,477 units in January, the fourth straight month of decline, says the Nikkei [sub]. Domestic sales fell 24.6% to 41,768 vehicles, marking the sixth consecutive month of decline. Exports slid for the fourth month in a row, down 62.1% to 27,578 units, while overseas output fell for the sixth straight month, down 51.2% to 97,809 units.

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.

More by Bertel Schmitt

Comments

Join the conversation

2 of 24 comments

Oldyak on Feb 25, 2009

this news just makes me SOOOO sad! Particularly the news about Toyota. What happened to world domination? maybe next year?

Like Reply
Burkey Devitt on Mar 25, 2011

Using that photo, which depicts such a horrible sin on the part of "our side" toward the Japanese, trivializes the nightmares they must still experience, whoever is still left. The sickness, the devastation, the utter depravity of it all...if you read the history books about dropping the A-bomb on Japan, you will find that Japan was begging us to surrender. I don't believe for two seconds that this saved lives. It destroyed lives, millions of them, innocent lives of men and women who, like me, could not control their tyrannical government. It's a great evil. Now the Japanese are re-traumatized and devastated all over again. You ought to take that photo down. I don't mean to lecture, but if you think it's OK to make light of a nuclear disaster, then you should hear from someone, at least, that it's way uncool.

Like Reply

Recent Comments

Philip I love seeing these stories regarding concepts that I have vague memories of from collector magazines, books, etc (usually by the esteemed Richard Langworth who I credit for most of my car history knowledge!!!). On a tangent here, I remember reading Lee Iacocca's autobiography in the late 1980s, and being impressed, though on a second reading, my older and self realized why Henry Ford II must have found him irritating. He took credit for and boasted about everything successful being his alone, and sidestepped anything that was unsuccessful. Although a very interesting about some of the history of the US car industry from the 1950s through the 1980s, one needs to remind oneself of the subjective recounting in this book. Iacocca mentioned Henry II's motto "Never complain; never explain" which is basically the M.O. of the Royal Family, so few heard his side of the story. I first began to question Iacocca's rationale when he calls himself "The Father of the Mustang". He even said how so many people have taken credit for the Mustang that he would hate to be seen in public with the mother. To me, much of the Mustang's success needs to be credited to the DESIGNER Joe Oros. If the car did not have that iconic appearance, it wouldn't have become an icon. Of course accounting (making it affordable), marketing (identifying and understanding the car's market) and engineering (building a car from a Falcon base to meet the cost and marketing goals) were also instrumental, as well as Iacocca's leadership....but truth be told, I don't give him much credit at all. If he did it all, it would have looked as dowdy as a 1980s K-car. He simply did not grasp car style and design like a Bill Mitchell or John Delorean at GM. Hell, in the same book he claims credit for the Brougham era four-door Thunderbird with landau bars (ugh) and putting a "Rolls-Royce grille" on the Continental Mark III. Interesting ideas, but made the cars look chintzy, old-fashioned and pretentious. Dean Martin found them cool as "Matt Helm" in the late 1960s, but he was already well into middle age by then. It's hard not to laugh at these cartoon vehicles.
Dwford The real crime is not bringing this EV to the US (along with the Jeep Avenger EV)
Kwik_Shift_Pro4X Another Hyunkia'sis? 🙈
SCE to AUX "Hyundai told us that perhaps he or she is a performance enthusiast who is EV hesitant."I'm not so sure. If you're 'EV hesitant', you're not going to jump into a $66k performance car for your first EV experience, especially with its compromised range. Unless this car is purchased as a weekend toy, which perhaps Hyundai is describing.Quite the opposite, I think this car is for a 2nd-time EV buyer (like me*) who understands what they're getting into. Even the Model 3 Performance is a less overt track star.*But since I have no interest in owning a performance car, this one wouldn't be for me. A heavily-discounted standard Ioniq 5 (or 6) would be fine.Tim - When you say the car is longer and wider, is that achieved with cladding changes, or metal (like the Raptor)?
JMII I doubt Hyundai would spend the development costs without having some idea of a target buyer.As an occasional track rat myself I can't imagine such a buyer exists. Nearly $70k nets you a really good track toy especially on the used market. This seems like a bunch of gimmicks applied to a decent hot hatch EV that isn't going to impression anyone given its badge. Normally I'd cheer such a thing but it seems silly. Its almost like they made this just for fun. That is awesome and I appreciate it but given the small niche I gotta think the development time, money and effort should have been focused elsewhere. Something more mainstream? Or is this Hyundai's attempt at some kind of halo sports car?Also seems Hyundai never reviles sales targets so its hard to judge successful products in their line up. I wonder how brutal depreciation will be on these things. In two years at $40k this would a total hoot.So no active dampers on this model?