Honda Cuts Profit Target by 62-Percent

Rob Sturtz
December 17, 2008

It was just six weeks ago that Honda Motors gave a profit forecast of $5.5 billion for 2008. As of today that forecast is being cut 62% to $2.1 billion. Honda's announcement of the sudden change in forecast and future prospects demonstrates that not even Honda is immune from the global financial troubles.

Honda plans to not renew contracts with temporary workers as well as halting development on diesel engines, the successor to the NSX sportscar and it's Formula One sponsorship all in an effort to curb expendatures. They also plan to delay opening its new flagship production facility in Tokyo and cutting executive pay.

One thing Honda is not doing is cutting their hybrid and small car development. These future vehicle are believed to be the key to Honda's future success. Read more at BusinessWeek.

Rob Sturtz

About the Author

Rob Sturtz is an automotive expert at RepairPal, the leading online source of auto repair resources and estimates. With many ASE Master certified mechanics on staff who have decades of experience, RepairPal knows all the fine points of car repair.

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