Japanese automakers feel the punch of trade dispute
( 2001-06-27 14:00 ) (7 )

Automakers in Japan are suffering from the ongoing Sino-Japanese trade war, ignited by Japan's import "curbs" on Chinese farm products, when orders from China are cancelled.

Isuzu Motors Ltd, Japan's top maker of light trucks, said on Wednesday it had halted output of China-bound heavy trucks after Beijing slapped 100 percent punitive tariffs on imports of Japanese vehicles.

Isuzu, owned 49 percent by General Motors Corp, stopped production of trucks for export to China last week and is likely to maintain the suspension of production for July and August, an Isuzu spokesman said.

"But we expect no big impact from the tariffs because most of our products sold in China are locally produced at Qingling Motors in Chongqing," he said.

Japan's largest automaker, Toyota Motor Corp, and number two Nissan Motor Co also said they had received some cancellations from their Chinese dealers due to extra tariffs.

Toyota said on Wednesday it would stop exports to China from July.

"We shall not be exporting cars to China from July," company spokeswoman Michiko Kirimoto said.

"For July most production orders have been cancelled in China and at the moment we do not expect orders in August as long as the situation continues," she said.

Toyota exported 10,000 vehicles to China in the year to March. Kirimoto declined to say how much money the company would lose as a result of its decision.

Nissan, which exported 16,034 vehicles to China in 2000 including knock-down kits or vehicles that are exported in parts and assembled on-site, declined to comment on the cancellation figure, but said it is accepting cancellations of orders for July.

"We will make an adjustment in our production of China-bound vehicles upon discussions with our dealer in China," a Nissan spokesman said.

A Toyota spokesman confirmed it has seem similar cancellations from China, but declined to comment on the details, saying the automaker is in the midst of assessing the impact of the Chinese action.

China decided last Friday slapped 100 percent tariffs on imports of Japanese vehicles, mobile phones and air conditioners in retaliation for duties imposed on some Chinese farm imports by Japan in April.