TOKYO (DPA) ― Japanese carmaker Daihatsu Motor Co. said Friday it had decided to withdraw from Europe from January 2013 due to sluggish sales and a decline in profits.
Daihatsu, a subsidiary of Toyota Motor Corp., said it would end the sale of new vehicles in the European market. Worsening profitability was partly responsible as the yen rose against the euro.
A stronger yen makes Japanese-made products less competitive abroad, and erodes earnings when revenues are repatriated.
Another factor was the high costs of meeting European regulations on carbon dioxide emissions, the carmaker said in a statement.
Toyota owns 51.3 per cent of the small-car producer.
Daihatsu is currently selling small cars in about 10 European countries including Germany, Austria and Italy. It sold about 58,600units in Europe in 2007, making up 16.3 per cent of the cars sold outside Japan in that year.
But the number fell to around 19,300 in 2010, only 5.3 percent of its overseas sales.