Daihatsu has confirmed that it will cease sales of new vehicles in Europe at the end of January 2013, according to Automotive News. The subsidiary of Japanese giant Toyota is best known for its budget offerings, particularly in the hatchback segment. Daihatsu claim that the strong yen has made exporting vehicles to Europe less financially viable than was previously the case.
“Daihatsu came to the decision because it could not make a business out of exporting completed units produced in Japan,” a company statement said.
The yen has appreciated sharply against the euro since late 2008 and especially since mid-2010. The euro currently fetches about 110 yen, near its lowest level in nine years, against about 135 yen in mid-2010 and 170 yen in 2008.
Exporting from Japan was not a viable business “when the costs to meet European regulations on CO2 emissions are growing and the profitability is deteriorating due to a stronger yen against euro,” the company said.
More stringent CO2 emission regulations in Europe, which in turn requires more R&D also played a part in the decision. The automaker said it would continue to supply parts and after sales services in Europe after 2013.
European deliveries of Daihatsu models fell from 11,9 per cent of oversees sales in 2005 to just 5,3 per cent in 2010. The carmaker said it sold 19 300 vehicles in 10 European countries in 2010, down from 36 300 units in 2009.
