Toyota May Cut Lexus Output for China

Toyota Motor Corp. will reduce production of Lexus vehicles 20% at a plant in Japan because the brand's sales are being hurt by a wave of anti-Japan sentiment in China, The Nikkei reports.

The newspaper, which doesn't cite sources, says the cut for the Chinese market will begin as early as this month at a Lexus factory in Fukuoka Prefecture. The affected models include the ES sedan, which is sold only overseas, and CT 200h compact hybrid car.

Protests in China, which were triggered by a dispute with Japan about control of an island chain in the East China Sea, resulted in the destruction of Japanese cars and damage to some dealerships. Japanese automakers briefly idled their plants in China last week.

Toyota says its overall sales in China have plunged 30% compared with the period before the unrest. Demonstrations have died down, but Japan's automakers don't know how long Chinese consumers will shun their brands.