Japanese auto manufacturers suffering also
The U.S. Automotive industry is not the only country being adversely affected by the steep declines in new vehicle sales. The 12 manufacturers that comprise the Japanese auto industry saw declines of 15% over the past year ending in March.
Japanese exports fell nearly 17% over the past year; a 7 year low according to the Bloomberg report.
With more Japanese manufactured vehicles built outside of the country, most of the country’s automakers also saw decreases in production overseas for the second straight year. With many of the U.S. auto makers stating publicly they will have summer layoff periods to try and counter the decreased supply demands, to date, no Japanese automakers have released statements indicating their workers will be forced into unpaid vacations.
One can only wonder, however, if that news is likely to stand if overall production continues to decrease. Ultimately it is demand that drives the manufacture of new vehicles, and while the Japanese are world leaders in on-demand production, there is a key at work: DEMAND!
If the Japanese people and the rest of the world are purchasing fewer Japanese made cars, clearly, their auto industry may face some of the same bleak outlooks that are afflicting American manufacturers.
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