Wednesday, December 8, 2021

Honda cuts profit and car sales forecast due to chip shortage

TOKYO (AP). Japanese automaker Honda cut its fiscal year profit and vehicle sales forecast, citing chip shortages and rising material costs on Friday.

Profits Honda Motor Co. in the second quarter of the fiscal year, fell 31% to 166.6 billion yen ($ 1.5 billion) from 240.9 billion yen last year.

Quarterly sales fell 7% to 3.4 trillion yen ($ 30 billion).

Honda is among many global manufacturers severely hit by a shortage of computer chips due to disruptions related to the pandemic.

Honda Executive Vice President Seiji Kuraishi apologized for the problem.

“We are very sorry for all those people who are looking forward to our cars,” he said, bowing slightly at a press conference.

Kuraishi said the supply situation is starting to improve, but Honda’s production recovery is unlikely to happen this fiscal year. Honda plans to increase production in the next fiscal year to compensate for the losses, he said, and the current problems will not hurt investments in future technologies such as electric vehicles.

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Honda expects profit of 555 billion yen ($ 4.9 billion) for the fiscal year to March 2022. This is 16% less than in the previous fiscal year and lower than the previously predicted profit of 670 billion yen ($ 5.9 billion).

Honda, which makes the Accord sedan, Cross Cub 110 motorcycles and Asimo humanoid robots, sold 917,000 vehicles between July and September, up from 1.25 million vehicles last year.

Tokyo-based Honda now expects to sell 4.2 million vehicles in its fiscal year through March 2022. The company had previously forecast sales of 4.85 million vehicles. Honda sold 4.5 million vehicles in the last fiscal year.

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Yuri Kageyama on Twitter https://twitter.com/yurikageyama

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