In general the credit crunch is hitting everyone. Automobile industry in US is struggling to survive. This has direct impact on Automobile industry in Japan too.
Here is the news article on the same.
Japan too is heavily dependent on Auto-industry and the lay-offs and job-cuts in this segment will have impact on all other sections in Japan.
Japan brace up for the roller-coaster ride , here is my another take on coping with lay-offs