Japanese Auto Output Set for First Fall in 5 Years, Nikkei Says

By Masaki Kondo

Nov. 16 (Bloomberg) -- Japan's domestic vehicle production will probably fall for the first time in five years as the U.S. financial crisis weakens export demand, the Nikkei newspaper reported today.

Total domestic production by Japan's eight biggest carmakers will decrease to about 9.7 million vehicles in the year ending March 31, the Japanese-language newspaper said, without saying where it obtain the data. Automakers including Toyota Motor Corp. and Honda Motor Co. initially projected an average 3 percent increase, raising output to 10.4 million units, the report said.

More than 10,000 jobs will likely be eliminated in the country's domestic auto industry this business year, according to the report.

To contact the reporters on this story: Masaki Kondo in Tokyo at mkondo3@bloomberg.net