Toyota Reduces Production of Lexus Vehicles image

Toyota announced it will reduce production of its Lexus vehicles by 20% due to the anti-Japan protests which hit China.

The violent demonstrations which took place last week in China caused Toyota a sales loss of 30%, after some of its stores were damaged by the protesters. After Japan reached an agreement to buy the disputed Sensaku (Diaoyu) islands, situated in East China Sea, the anti-Japan protests sparked. Demonstrators became really violent burning auto showrooms and breaking into Japanese cars, they also attacked Toyota, Honda and Nissan dealerships in Qingdao.

The economic ties between the two countries are at great risk, after in 2011 their bilateral trade increased 14.3% to a record of $345 billion. Toyota took the decision to cut production of its Lexus models, including the ES sedan and the CT 200h compact hybrid vehicle, manufactured at a plant located in Fukuoka Prefecture. Production will be reduced from 1,300 units per day to 1,000 units.

In 2011 the 22% of the facility’s output was sent to Asia, and this year the plant may not meet its target of 350,000 units. The automakers which will not be affected by the China-Japan feud, are Nissan and Honda because they export fewer cars to China.