- Toyota Motor Corp. sales dropped 70% in China in February.
- Nissan Motor Co’s numbers tumbled 80% in China in February.
- Many other automakers are struggling with the situation in world’s second largest economy.
The Coronavirus is threatening to plunge us all into a global recession if the situation keeps up. In the car business, crumbling sales in China, the world’s second largest economy, means that bottom lines will hurt and projections will need to be re-evaluated before long. In response to dwindling deliveries, Toyota will cut production of its Lexus models and Nissan will need to come up with a survival plan quickly.
Toyota’s interim plan to limit the damage caused by the Coronavirus is to cut Lexus vehicle output from Japan. The idling will last from next Monday until the end of the month and will represent about a 6% cut from the initially planned production numbers. Sales nosedived by 70% in February of 2020 compared the 2019 numbers.
Meanwhile, over at Nissan, sales tumbled 80% year-over-year. Over in the US, for the same period, deliveries dropped by 27% further hurting the already struggling Japanese carmaker. Nissan’s woes have gone on for a number of months in North America and other markets. Their focus was turning towards China to lessen the blow but the outbreak has put a stop to this plan.
Nissan’s new CEO, Makoto Uchida, will be implementing a new program to curb expenses and steer the company in a more profitable direction in May. The pressure is certainly on.