Toyota, Honda Reduce Global Output

Toyota Motor Corp., Honda Motor Co. and Nissan Motor Co., Japan's three largest carmakers, cut global production last month as falling home values and gasoline near $4 a gallon crippled U.S. demand for trucks and sport- utility vehicles.

Toyota reduced global production 17 percent in August, Honda's output fell 4.8 percent, led by a 10.2 percent drop in the U.S., and Nissan built 5.5 percent fewer vehicles, the companies said in separate statements today.

Toyota cut overseas production the most in 12 years, and Honda is building 50,000 fewer Pilot SUVs and Odyssey minivans than originally planned in the U.S. Truck sales in the country plunged 22 percent last month as banks cut lending and drivers avoided larger vehicles.

“A recovery in the U.S. economy won't take place until the second half of next year,'' said Koichi Ogawa, chief portfolio manager at Tokyo-based Daiwa SB Investments Ltd., which manages $28 billion. “The U.S. economic slump may also slow down China and other emerging markets.''

Toyota fell 2.5 percent to close at 4,690 yen, Honda declined 3.8 percent to 3,300 yen and Nissan slipped 5 percent to 763 yen on the Tokyo Stock Exchange.

New vehicle sales in the world's largest car market may fall to 14.2 million units, the lowest total in 15 years, according to market researcher J.D. Power & Associates.