Japan Car Parts Maker Denso Cuts Domestic Production-Official
21 Januar 2009 - 6:07AM
Dow Jones News
TOKYO (AFP)--Japan's top car parts maker Denso Corp. (DNZOY) is
planning a large-scale production halt for the first time in its
near 60-year history, an official said Wednesday, as the auto
industry slumps.
Denso will stop all manufacturing lines at its domestic plants
for a total of 14 days between January and March, excluding the one
that makes production facilities for its own group, spokeswoman
Miwa Kurokawa said.
"Carmakers are reducing production. We decided on our operation
halt in line with Toyota Motors' production suspension," she
said.
Toyota Motor Corp. (TM), which expects its first-ever operating
loss this financial year to March due to the global economic
crisis, is suspending operations at all 12 of its domestic
factories for 11 days in February and March.
Roughly half of Denso's products go to the Toyota Group. The
company also supplies General Motors Corp. (GM) of the U.S. and
other automakers.
It is Denso's first large-scale production halt since the
company was established in December 1949, it said.
In December, Denso slashed its forecast for net profit to
one-tenth of an earlier projection for the current business year
due to the poor performance of the auto industry and a strong
yen.
Click here to go to Dow Jones NewsPlus, a web front
page of today's most important business and market news, analysis
and commentary. You can use this link on the day this article is
published and the following day.