Honda dominates 2001/02 output as rivals cut back

TOKYO, April 23 Reuters is reporting that Honda Motor Co outpaced its domestic rivals in output in the year that ended on March 31, as Japan's second-largest automaker revved up production while others cut back to focus on restructuring.

Honda said on Tuesday it boosted output by 6.8 percent to 2.69 million vehicles in 2001/02 on demand for its runaway hit Fit subcompact as well as the Step Wgn (pronounced Step Wagon) and Stream minivans.

The company kept up the pace in March, with global production rising 5.4 percent year-on-year to 251,658 vehicles on solid sales of the Fit and its new Mobilio minivan.

Honda's stunning year was in sharp contrast to its rivals, with Japan's top automaker, Toyota Motor Corp (7203.T), plumbing a low point in its product cycle and other automakers cutting production as they restructured.

``Honda had a great year in 2001, but there also was less competition,'' said Hideaki Aonuma, auto analyst at Tokyo-Mitsubishi Securities.

Toyota, coming off a strong 2000/01 powered by its subcompact Vitz, saw worldwide production rise only 0.4 percent in 2001/02 to 5.2 million vehicles due to lower domestic sales.

Global production for Toyota on a group basis -- which includes output from minivehicle subsidiary Daihatsu Motor Co Ltd (7262.T) and truck maker Hino Motors Ltd (7205.T) -- fell 0.3 percent to 5.91 million vehicles.

However, Toyota saw group global output rise 2.5 percent to 561,092 vehicles in March and is expected, like Honda, to post record earnings for 2001/02 thanks to a weaker yen, cost cuts, and strong sales of high-margin vehicles in the U.S. market.

Japan's third-largest automaker, Nissan Motor Co Ltd, short on new products as it pushed ahead with restructuring, cut global output by 5.3 percent to 2.47 million vehicles in 2001/02.

However, Nissan's cost-cutting efforts -- under the leadership of France's Renault (RENA.PA) -- and the weak yen are forecast to have given it record profits for the year.

RESTRUCTURING TO KICK IN

Output is now expected to rise, with Nissan and Japan's other restructuring automakers shifting focus to boosting sales from cost-cutting with new vehicle blitzes in the new business year.

``Domestic sales might not go up much this year...but Nissan, Mazda, and Mitsubishi unit sales increases should outpace the overall market,'' said Aonuma.

Nissan saw global production for March rise 4.5 percent year-on-year to 238,500 vehicles on demand for its recently launched Altima sedan and the subcompact March.

Mitsubishi Motors Corp and Mazda Motor Corp, also suffered a slump in output in 2001/02, but will benefit from a series of new releases in the coming years.

Mitsubishi, still smarting from a consumer backlash over a quality cover-up and recall scandal in 2000, slashed global output in 2001/02 by 7.9 percent to 1.66 million vehicles.

Mitsubishi, Japan's fourth-largest automaker and 37 percent owned by German-U.S. auto giant DaimlerChrysler, also saw global output fall two percent to 166,751 vehicles in March.

Mazda, Japan's fifth-largest automaker and one-third owned by Ford Motor Co, cut global production in 2001/02 by 2.7 percent to 858,360 vehicles.

Mazda saw worldwide production fall 4.9 percent to 82,640 vehicles in March, but is expected to rev up its factories in 2002/03 as it releases four new vehicles in the domestic market.

Good prospects for Mazda's coming releases like the Demio subcompact, plus the naming of its president as the head of the luxury car unit of its partner Ford, helped push Mazda's shares over 400 yen on Tuesday for the first time since February 2000.

The shares ended up 7.18 percent at 418 yen, while Honda was down 0.71 percent at 5,590 yen and Toyota up 0.82 percent at 3,690 yen.

Nissan ended down 0.51 percent at 979 yen and Mitsubishi was down 0.25 percent at 394 yen.