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Posts Tagged ‘japanese auto industry’

Nissan Profits More Than Double as Sales Hit Record

Overcoming “the headwinds.”

by on May.11, 2012

Nissan CEO Carlos Ghosn with the maker's new Altima sedan.

Nissan Motor Co., the Japanese automaker generally credited with staging the fastest recovery from last year’s earthquake and tsunami has underscored its rapid turnaround by reporting record sales for the 2011 fiscal year.

The maker reached an all-time record selling 4.8 million vehicles in 2011, with profits for the fiscal year that ended March 31 gaining 7%, to 341.1 billion yen.  But the big jump occurred during the final quarter of the 2011 fiscal year, Nissan profits more than doubling, to 75.3 billion yen, or $943 million, up from 30.8 billion yen a year ago.

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With production back to full speed after the disaster-led cuts of last year, Nissan is nothing but optimistic about the future, the maker forecasting further earnings gains on worldwide sales it expects to reach yet another record of 5.3 million for the 2012 fiscal year, which began on April 1. And it is predicting a 28% increase in earnings.

“As we start the new year, Nissan stands as a company re-tooled and ready to accelerate its growth,” said Carlos Ghosn, who serves as CEO of both Nissan and its global alliance partner Renault.


Honda Tech Center Out of Action

Make also facing potential delay with new Civic.

by on Mar.25, 2011

Some analysts fear the launch of the 2012 Honda Civic could be impacted by the Japanese disaster.

A key part of Honda’s product development program could be out of action indefinitely in the wake of the earthquake and tsunami that devasted Northeast Japan earlier this month.

With Japanese automakers still struggling to assess the damage done by the natural disaster – and subsequent nuclear crisis – Honda could be among the makers hardest hit.  Even plans for its new Civic model could be impacted by the events of recent weeks.

Honda has been under fire in recent months because its product line has begun to look dated next to new vehicles from other Asian, European and American carmakers – notably including the new Ford Focus and Hyundai Elantra models targeting the long-dominant Civic.

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Howver, it now appears another casualty of the deadly quake — which has claimed the lives of as many as 26,000 — was Honda’s product development center.

The R&D facility, in Tochigi, suffered the only known fatality at any facility operated by a major automaker, one worker killed during the March 11 earthquake when a wall collapsed.  Employees who will work on the restoration started returning this week. But repairing the quake damage at the center will take considerably more time, Honda officials have confirmed.


Fall-out from Japanese Auto Shutdown Spreading

“Not a matter of if, but when” all automakers worldwide will be impacted, warns analyst.

by on Mar.21, 2011

Buyers are paying an extra $1,800 for the Toyota Prius, one analyst reports.

It’s only a matter of time until the global auto industry feels the full shock of the Japanese auto industry shutdown, according to a new study.  But the impact is already spreading, General Motors cutting production at a second U.S. plant due to a shortage of Japanese-made parts, while Honda tells U.S. dealers it may not be able to fill their orders due to production delays.

There are already signs that prices are going up on Japanese-badged vehicles, and some of the most high-demand models, such as the Toyota Prius, could be impacted most severely should the situation continue for more than a few weeks, analysts and industry insiders warn.

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Meanwhile, in their struggle to re-start home market production, some makers may turn to foreign sources for traditionally Japanese-made parts.  Nissan, in particular, is considering the need to ship engines produced in Tennessee back to Japan for use on some of its assembly lines.

“It is not a matter of if, but when,” warned Michael Robinet, chief of auto research IHS Global Insight, before the near-complete shutdown of the Japanese auto industry is felt by every major automaker worldwide.