
A Toyota dealership in Qingdao was burned by protestors in a dispute over an island chain claimed by both China and Japan.
What’s bad news for the Japanese is turning into a hugely positive development for Detroit and European automakers. General Motors Co., Ford Motor Co. and Volkswagen AG all stand to benefit as Japanese automakers are forced to cut back on their sales and marketing efforts in the critical China market because of a political dispute over some nearly submerged islands in the East China Sea.
While Japan’s three largest automakers reported significant increases in earnings over the past weeks, they’ve also downgraded forecasts for the months ahead, and while a variety of headwinds face them, China is at the top of the list.
“An ongoing fall in sales in China will directly influence our financial report for the second half” of the 2012 fiscal year which ends next March 31st, Nissan Motor Co. Chief Operating Officer Toshiyuki Shiga acknowledged this week.