Toyota Output Drops 24% during first half of F.Y.

The Japanese automaking giant remains mired in the Great Recession.

Toyota Motor Corporation (TMC) said in Tokyo this morning that its global production dropped more than 24% during the first half of its fiscal year, which ended in September 2009. Its export business from Japan is off 45%, which will put extreme pressure on financial results when they are announced next week.

Most analysts expect TMC to continue to report large losses for the near future.

However, sales for the Toyota brand in Japan during September increased for the second consecutive month. Sales of Lexus vehicles were 3,044 units, a 31.8% increase.

In Japan, Toyota now has a 44.4% share of market, excluding mini-vehicles, a 2.6% increase, and a record high for the month of September.

In a potential bright spot, TMC reported overseas production had its second consecutive month of increase, due to added production mainly in Asia and North America. Here, the strengthening Yen will cut into potential revenue from the increases, putting further pressure on profitability.

While the Asian growth trend appears firmly established, it is also not clear whether North American markets are really on the rebound.

In the U.S., CARS, aka the Cash for Clunkers incentive program, decimated inventory levels and caught most automakers off guard. Some production has now been added to restock, but the current trend shows the seasonally adjusted annual selling rate in the U.S. at below 10 million, and unusually low level where it has languished all this year.