U.S. financial crisis affecting the Japanese car and parts industry

U.S. financial crisis is affecting the global economy, also had an impact on all Japan's walks of life. Auto industry is one of the important pillars of Japan's economy, it's contributions to employment and tax are not be overlooked, however, Japan's auto industry is facing a severe test, many enterprises are taking all possible ways to minimize the financial crisis brought about by the negative impact .

Recently, Japanese media discuss the survive current situation of the Japanese automotive industry under the financial crisis. The report go deep into the automotive industry directly and invited Toyota president Katsuaki Watanabe as special guests. According to reports, an auto parts supplier by the name of "Sangang industry" in Nagoya , as early as before the financial crisis, has been in difficult to operate due to oil and steel price rising. Through technical innovation and cost reduction, the situation has improved . But after the financial crisis, Sangang industry had to reduce massive staff and stopped the two production line.

Katsuaki Watanabe said: "The development of Toyota Motor Corporation in the world are growing, but due to the United States financial crisis, tension of crude oil and prices of raw materials, was forced to slow down the pace."

Earlier, Toyota had just cut a large North American vehicle production scale and was forced to lay off. Katsuaki Watanabe said because of sluggish sales of large vehicles, the company income was reduced, high investment in research and development is difficult recovery in the short term , it add more financial burden.