AFP has reported that car production in Japan has more than halved year on year.
Demand for Japanese goods has dropped both at home and abroad and the Japan Automobile Manufacturers Association (JAMA) has stated that production has in fact dropped by 56.2 per cent.
The Times has written that JAMA predicts this year will provide the worst sales figures for 32 years. Many large manufacturers have cut staff, shifts and some have even ceased production.
Japanese car manufacturers are hoping that the Japanese government will continue to implement low-emission regulations to encourage people to purchase new vehicles. Perhaps leading to a rise in Grey Imports, as the the car owning public look to make money off their older vehicles.
One stimulus model that appears to be working in Germany, involves providing car owners with vehicles over 10 years old a reward for scrapping the vehicle in the form of money towards a new, or relatively new vehicle.
Perhaps this system will be put in place in Japan too?
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