On Wednesday Honda reduced its yearly operating profit estimate by 67 percent, its third profit caution this year, as a deepening financial emergency continues to hit international vehicle demand and making the yen soar.
The second-biggest carmaker of Japan now anticipates operating profit for the fiscal year to March 31 at 180 billion yen or $2 billion, about 81 percent fall from the previous year. It had earlier forecast 550 billion yen.
Honda reduced its net profit forecast to 185 billion yen from 485 billion yen. Honda had been predicted to last out the storm better in contrast to other global carmakers courtesy to its fuel-efficient fleet, but the carmaker's new-vehicle sales have also been hit a solid blow, like all other car manufacturers, by the economic decline. Honda outlined steps to lower non-urgent spending to last out the economic storm.
Among cost-reducing steps intended are, delaying inauguration of medium to large diesel vehicles in the US and Japan to focus on hybrids and diminutives.
Indefinitely putting off expansion of vehicle yield in India and TurkeHonda will push through with plans to present a small car below the Fit/Jazz subcompact for up-and-coming and other markets in two to three years down the road.
A CR-Z based new sporty hybrid is set to go on sale by end of 2010 but development of NSX sports vehicle successor that comes with a V10 engine has been stopped. Honda also will proceed to develop small diesel powertrains.