Japanese carmakers slice output to minimize losses

Toyota Motor Corp., the world’s largest automaker, said its global production fell the most in at least 23 years as the worst recession since the Great Depression hammers vehicle demand in North America and Europe.

The company’s output plunged 53 percent to 358,573 vehicles in February from the year-ago period, the company said in a statement today. That’s the biggest percentage drop since the company began releasing the tally in January 1986. Honda Motor Co., the country’s second-largest automaker, built 190,680 vehicles, down 43 percent. Output at Nissan Motor Co., Japan’s No. 3 carmaker, slid 51 percent.

Toyota and other Japanese automakers widened production cuts to reduce their dealer’s inventories. U.S. auto sales last month fell to the lowest since December 1981 after rising unemployment and tighter credit deterred car purchases.

“Tighter credit is killing demand in the U.S.," said Hitoshi Yamamoto, chief executive officer of Tokyo-based Fortis Asset Management Japan Co., which manages $5.5 billion in Japanese equities. “A recovery in the U.S. is essential to help Japanese automakers ease production cuts."