In recent economic downturns, Japan's been able to lean on its auto industry to offset declines elsewhere. But a decade of success by the car makers -- particularly Toyota's challenge of general motors. position as the world's biggest producer -- means that they've become Japan's largest export sector just in time for a protracted slump in global auto sales.And the country's reliance on indebted, car-loving Americans, in particular, has actually increased in recent years. The export value of cars and auto parts has doubled in less than a decade and,
The area is home to about 12% of Japan's 128 million population, and managed to avoid the spike in unemployment elsewhere in the nation during both the Asian financial crisis and dot-com downturn -- thanks to continuing growth in auto exports.Toyota City, with 400,000 residents and 76,000 jobs connected to the auto business, meanwhile, expects next fiscal year's corporate tax revenue to plunge from about $490 million to one-tenth of that. So public-works spending is being slashed.