Japanese OEMs resume full production this summer; all ten OEMs have earnings growth in FY 2010
Despite strong Yen, end of governmental aid and March earthquake
2011/06/20
- Summary
- Domestic production back to full throttle this summer from the dip of 40 % in March and April after the March 11 Earthquake
- Consolidated sales volume up by 9.6% in FY2010 to a total of 20.56 mn units, while domestic sales down by 8.6% to 4.233 mn units
- Total sales of ten OEMs up by 5.7% to 46.5 trillion yen for the first time in three years; Nissan enjoys brisk sales in and outside Japan
- Ten OEMs post positive operating and ordinary profits, while Mazda and Hino result in overall deficit due to the Earthquake
- Factors of improving operating profits: Sales growth and cost reduction absorb the loss from exchange fluctuations
- Investment in facilities and R&D expenses make first increase in three years
Summary
Japanese OEMs' domestic production in March and April 2011 was stricken by the March 11 earthquake and plummeted to around 40% of the previous year. Their production will return to full throttle earlier than expected; and it could happen late this year. It is expected that, in summer, the Japanese auto giants of Toyota, Honda and Nissan will resume their production to the same level as projected before the great earthquake.
In the FY 2010 results unveiled in late April to early May after the earthquake, all Japanese OEMs did not present the earnings forecast for the next term, because it was difficult to estimate reasonable figures due to the earthquake. Their FY 2010 results all showed earnings growth despite the strong yen, the end of the aid by the Japanese Government and the Great East Japan Earthquake.