Toyota Cuts Production; Property Sales Plunge

123jump.com Staff
19 Jan, 2009
New York City

Toyota plans to cut in half its production in Japan and in the U.S. as the global vehicle demand estimates weaken. Only few weeks ago General Motors lowered its estimate of global and domestic U.S. demand. Property transactions declined 50% in the year and 80% in December.

[R]5:00AM New York, 7:00PM Tokyo - Toyota to halve production from February to April. Property deals plunge 80% in December quarter.[/R]

Japan market indices were mixed as the Nikkei rose led by consumer electronic makers and commodity stocks, while the Topix Index dropped.

In Tokyo trading Nikkei 225 index rose 0.3% or 26.7 to 8,256.85 and the broader Topix Index shed 0.1% or 0.16 to 817,73.

In the first section of the Tokyo Stock Exchange 7.2 billion shares worth 455 billion yen were traded and in the second section 903 million shares valued at 1.02 billion yen changed hands.

Of the Nikkei 225 index stocks, 103 rose, 108 declined, and 14 were unchanged. Toshiba Corp. led gainers in the index shares with an increase of 6.5%.

Toyota to Halve Japan Production

Kyodo News reported today that Toyota Motor Corp. will halve production from February through April to 9,000 units per operating day below the breakeven mark of 11,000 units per day.

According to the report, the new plan involves suspension of factory operations for 14 days between January and March.

The automaker on Saturday suspended 11 of the 12 factories in Aichi Prefecture, Japan on slowing global sales and will further halt production next Saturday and on January 30.
In February and March, Toyota will halt all 12 factories for 11 days.

In addition, all three manufacturing subsidiaries — Toyota Motor Hokkaido Inc., Toyota Motor Tohoku Corp. and Toyota Motor Kyushu Inc. — will also suspend operations during the three months to March.

The report also noted that the automaker will suspend production at all of its seven factories in North America for 30 days in the period between January and March to halve inventories that have soared to 80 days to 90 days of sales level.

Sienna minivan production will be suspended for 30 days at the Indiana factory and the production will be cut to 21 days from 25 days production at the California plant run by a joint venture with General Motors Corp.

Property Deals Fall 80% in December Quarter

Nikkei News reported today that the number of real estate transactions declined 80% on the year in the three months to December and 50% in 2008 as the turbulence on the global financial markets crimped access to credit.

Separately, the online report said the country''s industrial production was revised to 8.5% in seasonally adjusted terms in November from the previous month. Production had earlier been estimated at 8.1%.

Yen Rises

Yen gained to 90.61 against the dollar from 90.64 yesterday.

Gainers & Losers

Toshiba Corp. led gainers in the Nikkei 225 index shares with a rise of 6.5% followed by increases in Nitto Boseki Co. of 6%, in Sharp Corp. of 4.7%, in Tokyo Electron of 4.5%, and Meidensha Corp. of 4.4%.

CSK Holdings led decliners in the Nikkei 225 index shares with a decline of 4.1% followed by losses in Sumitomo Trust & Banking of 3.9%, in Japan Tobacco of 3.8%, in OKI Electric Industries of 3.5%, and Asahi Breweries of 3.2%.

Citigroup to Sell Nikko Cordial Securities

The Wall Street Journal reported yesterday that Citigroup plans to sell Nikko Cordial Securities as part of its restructuring plan. However, the company has earlier planned to keep the brokerage.

The Japanese brokerage was not included in the joint venture deal announced last week with Morgan Stanley for Smith Barney.

In the weak credit market and weakening trading in Japan the sale of the brokerage unit may take several years.