It looks like another car company has suffered from intense competition. Daihatsu has issued a statement that it will be pulling out from the European market by 2013 citing the strength of the Japanese Yen against the Euro and the UK Pound Sterling have made exports to Europe unprofitable. How unprofitable you may ask?

Well, in 2007 they sold 58,600 vehicles throughout Europe. In 2010 they sold 19,800 vehicles. Quite a massive drop indeed and one that surely makes such a drastic measure like a pull-out happen. It is quite surprising as Daihatsu is quite an expert in making small and economical cars. Europe loves small and economical cars, but this time the economics of scale do not allow Daihatsu the luxury to sell cars over there anymore.

What I think is that aside from the usual increasing Yen against other currency reasoning is the fact that Daihatsu aren't making cars that are unique enough. The latest Boon/Sirion looks so similar to the previous version. The Charade/Mira is small and has the cheapest looking and hard to the touch plastics. The very splendid Copen mini coupe is ancient without a replacement in sight. Now add to the fact that they don't produce cars where they want to sell them is the biggest problem. Take note that Toyota assembles their cars in Europe (UK) and Suzuki assembles the Swift in Hungary. Not having a production base in Europe has actually made Daihatsu suffer.

I somehow wonder whether this piece of news is prelude for more bad news for Daihatsu. They could eventually be totally taken over by Toyota (which already owns 51%) if things go worse for them in Asia.

source:autoblog.de/autocar