Feb. 25 (Bloomberg) -- Toyota Motor Corp., Japan’s biggest automaker, slashed global production last month by the most in more than two decades as the recession and a credit crunch decimate demand for new automobiles.

Toyota’s output fell 43 percent to 413,285 vehicles in January. Honda Motor Co.’s production dropped 33 percent to 226,551 vehicles and Nissan Motor Co.’s slid 54 percent to 145,286 units, the companies said separately today.

Japanese carmakers are cutting output and earnings forecasts as slowing economies and rising unemployment in their largest markets deter consumers from buying new vehicles. Toyota’s domestic output is being reduced by half this quarter, compared with a year earlier, as exports plunge and it heads for its first operating loss in 71 years.

“Things will get worse before they get better.” said Ed Rogers, chief executive officer of Tokyo-based hedge fund adviser Rogers Investment Advisors Y.K. “Nobody is buying cars -- there is a global freeze of commerce.”

Toyota, which tripled its loss forecast earlier this month, said Japan production fell 40 percent to 209,224 and U.S. production fell 65 percent to 38,245 units. Exports to the U.S. plunged 80 percent.

Overall Japanese exports plunged 46 percent in January, resulting in a record trade deficit, the Finance Ministry said today. Vehicle sales in the country fell the most in 35 years last month. U.S. industrywide auto sales may hit a 27-year low of 10.5 million units this year, according to General Motors Corp.

Most Since 1999

Honda’s global production decline in January was its biggest since at least 1999, as exports to the U.S. fell 62 percent in the period, the company said.

The automaker is widening output cuts in North America by 29,000 vehicles for the year ending March. It plans to make 1.26 million units in the region this fiscal year, down from an initial goal of 1.47 million. Japan production is also being cut to 1.15 million units from an original plan of 1.31 million.

Nissan, which posted its biggest production decline since at least 1984 last month, estimates domestic output will tumble 16 percent to 1.06 million vehicles this fiscal year. Nissan last month said its U.S. plants will build vehicles only four days a week indefinitely.

The automaker’s total exports fell 62 percent last month, the most in at least 38 years. Exports to North America slid 85 percent.

Mazda Motor Corp., Japan’s second-largest car exporter, said global production fell 63 percent to 45,548 units in January.

Fuji Heavy Industries Ltd., the maker of Subaru-brand cars, said global production fell 32 percent to 31,654 vehicles in January. Suzuki Motor Corp., Japan’s second-largest minicar maker, said global production fell 20 percent to 177,085 units.

To contact the reporter on this story: Makiko Kitamura in Tokyo at mkitamura1@bloomberg.net.

Last Updated: February 25, 2009 01:16 EST