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Toyota’s car output to be cut after earthquake

Output at Toyota, the world's largest car maker, could be cut by at least 40,000 vehicles after last week's earthquake damaged its Japanese factories and caused electricity shortages, according to a Bloomberg report carried in the Sydney Morning Herald.

Toyota closed 12 plants, a spokeswoman said. Its profit will be cut by ¥6 billion ($AUD73 million or NZD99.6 million) for each day of lost operations. Nissan and Honda could each lose ¥2 billion a day after closing plants, Goldman Sachs estimates. Sony and Toshiba have also shut plants.

A report from analysts Nomura Holdings estimated that lost output from the earthquake could trim 0.3% from Japan's economy.

Nissan said 2300 new vehicles were damaged by the tsunami surge. The company will cut output by about 18,000 vehicles, a company spokeswoman said.

--Source: Sydney Morning Herald