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Toyota, Nissan cut China output over island row

26 september 2012, 12:38
Japanese auto giants Toyota and Nissan are reducing production in China because demand for Japanese cars has been hit by a bitter row over disputed islands, AFP reports.officials.

"Our affiliates in China are adjusting production in consideration of demand," a Toyota spokesman said.

"There is an effect from the current situation between Japan and China on our sales," he added.

He was responding to a question about the impact of a festering row over the Senkaku islands in the East China Sea, controlled by Japan but claimed by China, which knows them as Diaoyu.

A Nissan spokesman said plants run by its joint venture in China will suspend operations for slightly longer than China's early-October holiday period.

He said Dongfang passenger vehicle plants will stop production from September 27 to October 7 "in the view of the current market situation, and since China's national holiday will occur soon".

"Production will restart on October 8. After this we will remain flexible regarding the market situation," he said.

The comments came as the foreign ministers of China and Japan held talks on the sidelines of the UN General Assembly in New York.

China has been infuriated by the Japanese government's move to buy the islands from their private owner.

The meeting was the highest-level face-to-face between the two sides since the government purchase earlier this month.

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