Japanese auto giant Toyota Motor Corp. said on Monday that February production surged 83 percent compared to the same month a year ago, despite a recent recall of more than 8 million vehicles.
Other major Japanese automakers also reported production increases. Honda Motor Co. said its production last month increased by 49 percent, while Yokohama, Japan-based Nissan Motor Co., increased its production volume by 72 percent, to 270,366 vehicles worldwide.
Toyota, the world’s largest automaker, said that it produced 655,180 vehicles last month, an increase in production in all regions globally as the global auto industry recovers from one of the worst downturns in recent memory.
The increase is mainly due to uncharacteristically low demand last spring, when most of the world was mired in recession and consumers tightened their belts to rein to spending.
Toyota is also battling image problems related to several massive safety recalls, affecting around 8.5 million vehicles and has thrust the company into federal investigations and class-action lawsuits.
The increase in production was reported even as Toyota halted production lines last month at several North American assembly plants to investigate matters related to acceleration pedal recalls.
As for Honda, it saw its production in China increase by 26 percent. The company’s joint venture with Dongfeng Motor Group Co. said that it would build a second assembly plant in China to produce cars starting in 2012.
Incentive Programs
Toyota, which traditionally did not need incentives to move cars from its lots, has ramped up promotions and incentives this month to lure wary shoppers to its dealerships.
The company is offering zero percent financing and certain temporary promotions on leases across a range of models. While U.S. automakers have used such strategy for years, it is nonetheless new for Toyota.
Rivals Honda and General Motor Co. have also stepped up promotions this month.
Toyota to Supply Know-How to Mazda
Toyota has also signed an agreement to license hybrid technology used in its Prius hybrid vehicles to Mazda, for assisting in the development of Mazda’s own hybrid vehicle.
Mazda is aiming to release a hybrid vehicle in Japan by 2013, the company said. The agreement underscores Toyota’s position as a market leader in hybrid vehicles and hybrid technology—its Prius, introduced in 1997, is the world’s best-selling hybrid car with 2.3 million units sold globally.
Mazda’s campaign “Sustainable Zoom-Zoom” aims to increase fuel economy across its model lineup by 30 percent by 2015.
“Mazda will enhance the core aspects of its vehicles—including engines, transmissions, and weight reduction—and then progressively add electric devices such as idling stop, regenerative braking, and hybrid systems,” according to a company statement.
Parts and technologies shared include batteries, motors, and electronic control units.
Nissan Bets on Vans
Nissan, the third-largest Japanese automaker, recently completed a $118 million expansion of its Canton, Miss. plant to support increased production of commercial vans called the Nissan NV.
Nissan bets that sales of such vans will increase as the U.S. economy recovers—buyers of such vans include shipping companies such as United Parcel Service and small- to medium-sized businesses that depend on deliveries and logistics.
The company, which stopped production of its Quest minivan model, has assigned all of Quest’s production line workers at its Canton plant to build the new commercial van.
Nissan faces competition from General Motors and Ford Motor Co. domestically in the commercial van market.
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