Thursday, September 20, 2012

Japan carmakers face $250 mln in lost China output, new risk

(Reuters) - Japanese automakers, led by Nissan Motor Co, have lost an estimated $250 million in output because of anti-Japan protests in China this week and now face the risk that sales will sputter in the world's largest car market.

Chinese protesters took to the streets this week in response to an escalating dispute with Japan over ownership of a group of isles in the East China Sea, prompting Japanese automakers including Toyota Motor Corp, Honda Motor Co and Nissan to temporarily halt operations at plants in China.

Lost production volume from those suspensions amounted to around 14,000 vehicles as of Thursday, according to an estimate by IHS Automotive. That would mean immediate lost revenue of about $250 million, based on an average vehicle sticker price of about $18,000 for the Japanese brands.

That toll could rise. Toyota said some of its China plants are still suspended, without specifying. Honda also has two factories halted, while Nissan has resumed operations. Read More