The business and economic shockwaves come after Japan last month nationalized the tiny islands, called Senkaku in Japan and Diaoyu in China, which were already under Tokyo's control but are also claimed by Beijing. The move set off violent protests in China, and a widespread call to boycott Japanese goods. Toyota Motor Corp. and Honda Motor Co. dealerships were burned down in one city.
Seeing footage of Toyota cars getting smashed by angry rioters, Toyota President Akio Toyoda had looked almost tearful, confiding in reporters: "I couldn't bear to watch. It hurt as though I was getting beaten."
A report by J.P. Morgan, released Tuesday, projected Japanese auto exports to China will crash 70 percent during the October-December period. The export of auto parts will slip by 40 percent – about the same drop estimated for exports of other consumer products, such as electronics, it said.