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Last Updated: Monday, 23 June, 2003, 05:12 GMT 06:12 UK
Japan shifts car production abroad
A Mitsubishi car showroom
Carmakers are still exporting heavily
Toyota, Japan's biggest carmaker, is seeings its output surge as it ramps up production overseas to cope with a stronger yen and a flagging home market.

But while some of its competitors are following suit, most are suffering a downturn in production.

The figures for May, showing a production rise of 3.8% for Toyota and a 2.4% gain for Mazda but falls for Japan's other three big auto makers, come as the country's exports to the US are slowing - even if China is picking up more and more Japanese goods.

Overall, both exports from and imports to Japan rose, but experts warned that the effects of the Sars respiratory virus could be delayed, and could still hit the economy in the months to come.

Taking stock

Japan's automobile companies have been supported by strong exports in recent years despite the difficulties caused in the home market by soaring unemployment and repeated recessions.

But a change of strategy is now being forced on them as the dollar weakens, since a strong yen would render their products less competitive on the world market.

As a result, Toyota and Honda have each ramped up overseas production of vehicles by almost 15% in the year to May.

But while Toyota's home output and exports have fallen a few percentage points, Honda is building more than a fifth fewer cars at home than last year - and its overall output worldwide is down 0.6%.


SEE ALSO:
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Japan struggles for revival
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31 Jan 03  |  Business


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