Auto Knight

Honda Loses Money

by Darren

Honda joins the list of automakers who aren’t making any money in the current environment. The loss is the first such operating loss experienced by the company in 11 years.

Honda Motor (nyse: HMC – news – people ) looks on course to post an operating loss in the second half to the tune of at least 120.0 billion yen ($1.4 billion), on the severe demand slump and surge in the value of the yen. This would be the company’s first half-year operating loss in over a decade. Japanese automakers are scrutinizing all their pipeline investments for possible delays or cancellation, slashing output and jobs, and looking to wrangle price cuts from steelmakers and other suppliers.

The company also stated they don’t see a recovery coming any time soon.

The major forces driving sentiment down for Honda is the same thing being experienced by all major auto makers: declines in the huge US and European markets.