Sales of cars in Japan dropped by 6.1 per cent during May compared with the same month in 2007. The figures from the Japanese Automobile Dealers Association (JADA) revealed that sales were on the decline. The JADA claimed that there was one less selling day in the calendar month compared with last year and also noted that April's sales were boosted by tax changes. But sales were down at Toyota (2.8 per cent) and Nissan (11.4 per cent) while Honda managed to scrape a 5.1 per cent rise.

Meanwhile the end of May saw Nissan announce plans to open another factory in China. The manufacturer is attempting to extend its growth in a competitive market. According to a report from the BBC, Nissan will team up with Dongfeng Motor Group to construct a plant in Henan which will operational by 2010. The $145 million plant will be able to produce 120,000 vans and goods vehicles as well as boosting the number of cars to come out of the region.

General Motors announced that industrial action has cost the company billions of dollars. The firm revealed that about £1 billion was lost in the three months to June because of strikes at its factories as well as at parts suppliers. Production was affected and large sport utility vehicles and pickups were the areas hit hardest.

But the firm revealed that it did not expect to recoup any of the losses because of the economic slowdown affecting world markets. Striking at American Axle has already cost the firm $800 million in the first three months of the year.

In addition, Honda announced plans to deliver nearly 200 FCX Clarity hydrogen-powered fuel cell vehicles to customers in the first three years of production. Leases are set to begin in July and individuals who expressed an interest in the car are being notified. The first vehicle will roll off the production line on June 16th; a chance for Honda to show the world's first fuel cell vehicle production facility.

Meanwhile, new car registrations dropped in May by 3.5 per cent representing the first fall in volumes since February. Figures from the Society of Motor Manufactures & Traders (SMMT) found that volumes over the first five months of the year had dropped by 0.6 per cent. This was attributed to the difficult credit conditions being experienced by consumers in the UK.