Japanese Carmaker Closing Up Shop in Vietnam Due to Poor Sales
Daihatsu Motor Co will stop making cars in Vietnam by the end of this year because of poor car sales.
It's not that Daihatsu, a minicar specialist can't make good fuel efficient cars (I had a 3-cylinder 1000cc diesel in Japan 20 years ago that got 55mph), it's the competition from other Japanese, European and U.S. automakers.
Daihatsu will turn its attention to Indonesia.
Vietnam as a whole is seeing the country's car market in a slump. Reason – a
new 50% special consumption tax for five-passenger vehicles. Sales in 2006 were 24% LOWER than in the peak of 2003.
Daihatsu sold only 530 of 32,000 units total in 2006.
Consequently Daihatsu will have only two plants overseas now, Malaysia and Indonesia.
Meanwhile….GM, Ford and DaimlerChyrsler are happy they are not the only car companies that are restructuring.
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