Honda record first significant loss in 15 years

Honda record first significant loss in 15 years

Honda first loss

An operating loss of ¥283.0 billion ($5.25 billion NZD) for the period ending March 31 represents Honda’s first quarterly loss in 15 years. The automaker also reported total global sales to distributors and dealers were down 680,000 units, or more than 35 percent. In North America alone, volume has slid from 459,000 units last year, to just 219,000 units this year. For the period, Honda has reported operating losses in all its major markets.

As ugly as the news is, Honda is still faring better than many of its competitors. Chrysler LLC and General Motors are simply trying to survive. While Japanese rival Toyota is expected to announce its first loss later this month. Honda’s Executive Vice President Koichi Kondo, is reportedly staying confidently optimistic. The company will focus on fuel efficient vehicles, leverage its manufacturing muscle, and engage in aggressive cost cutting to try and keep the company profitable, even as sales are predicted to continue their decline.

Honda first loss

An operating loss of ¥283.0 billion ($5.25 billion NZD) for the period ending March 31 represents Honda’s first quarterly loss in 15 years. The automaker also reported total global sales to distributors and dealers were down 680,000 units, or more than 35 percent. In North America alone, volume has slid from 459,000 units last year, to just 219,000 units this year. For the period, Honda has reported operating losses in all its major markets.

As ugly as the news is, Honda is still faring better than many of its competitors. Chrysler LLC and General Motors are simply trying to survive. While Japanese rival Toyota is expected to announce its first loss later this month. Honda’s Executive Vice President Koichi Kondo, is reportedly staying confidently optimistic. The company will focus on fuel efficient vehicles, leverage its manufacturing muscle, and engage in aggressive cost cutting to try and keep the company profitable, even as sales are predicted to continue their decline.

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