Auto production in Japan dropped for the eight consecutive month in April.
Overall Japan auto production dropped 6.5% to 747,730 units in April, compared with 799,470 units in April 2012, accounting for the eight consecutive months of drop. Passenger vehicle production fell 8.4% to 634,204 units, while truck production was up 4.5% to 102,309 units. Sales of buses were up 17.2% in April to 11,217 units and motorcycles dropped 9.6% to 44,267 units, with motorcycle production falling for the 12th straight month.
Japan has an aggressive plan to take the region out of a long slump by increasing consumer prices and encouraging borrowing. Similar to the US Federal Reserve’s strategy, Japan’s central bank will try to bring more money to the financial system, a far-reaching step aimed at making companies and consumers borrow and spend.
Economists believe that a healthier Japan will help other markets too, as customers here will buy more services and products from the US, China and Europe, helping the global economy. This strategy will also decrease the yen’s value, as a cheaper currency will make Japanese products less costly for foreign markets.