Japanese auto production fell in December

Vehicle production at Japan’s three largest car companies fell sharply in December, as sales plunged, especially in the critical U.S. market.

Toyota reported its global production shrank by 25 percent in December, CNN reported Wednesday. Vehicle output at Honda dropped 7.5 percent, while Nissan’s production fell 35.9 percent.

During 2008, Toyota produced 3.8 percent fewer vehicles than it did in 2007, while Honda’s annual production fell 1.2 percent and Nissan’s dipped 1.1 percent.

Slowing economies have taken a huge bite out of new vehicle sales, but Japanese exports are also struggling as the yen has gained strength against the dollar, making Japanese products more expensive in the United States.

Japanese automakers have scheduled further production slowdowns. Toyota said it would stop production at all 12 of its domestic factories for 11 days in February and March. Honda said it would lay off 3,100 temporary workers in Japan and reduce production in North America by 29,000 vehicles.