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Japan’s Carmakers to Cut Output in China

Nissan Motor Co. and Toyota Motor Corp. will reduce their production in China by closing factories several days before a scheduled holiday shutdown.

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Nissan Motor Co. and Toyota Motor Corp. will reduce their production in China by closing factories several days before a scheduled holiday shutdown.

Suzuki Motor Corp. says its Chinese car plant is operating on only one of two shifts. Honda Motor Co. is considering suspending one of two shifts at its joint venture with Guangzhou Automobile Group, according to The Nikkei, which does not cite its sources.

The companies are responding to slowing demand for their vehicles in China caused by a swell of anti-Japan sentiment. Most of Japan's carmakers suspended production for several days last week after violent protests across China resulted in the destruction of some Japanese-brand vehicles and dealerships.

Toyota will halt production at factories in Guangzhou and Tianjin on Wednesday, four days ahead of the planned break. The Nikkei says the Guangzhou facility will operate on only one of two shifts when work resumes on Oct. 8.

Toyota confirms the newspaper's report earlier this week that it will reduce production in Japan of China-bound Lexus vehicles.

Nissan says it will idle three Chinese manufacturing facilities on Thursday, three days ahead of schedule. The company's car venture, which has been running only one of two shifts since last week, will continue to do so after the holiday, according to The Nikkei.

The newspaper estimates that shutdowns and shorter hours at Nissan and Toyota will reduce their combined September output in China by more than 20,000 vehicles.

Gardner Business Media - Strategic Business Solutions