Profit Going Down for Toyota, Honda
Japan was shaken up severely by March earthquake, but the impact of earthquake on Japan's economy can still be seen. Toyota, the world's biggest automaker, has announced a decline in its first half net profit of this year. The manufacturer has blamed that the earthquake had caused a drift in its profit.
This year natural disasters have impacted many economies. Thailand is also one of those countries which had been severely been affected with natural disaster. The car manufacturer Honda, Thailand, also booked loses because of the flood which led to temporary closure of its plants.
Toyota and Honda are the two car manufacturers which have witnessed an unwanted shift in their profits. Earlier this year, Toyota was forced to recall many of its units as they failed to pass safety test. As a result of the recall, manufacturer had to put a halt over its production ill 12th of November.
Taking the advantage of the situation the General Motors and Volkswagen increased the production of its automobiles. The increased production of the duo has started threatening the position enjoyed by the Toyota of world's biggest auto manufacturer.
Echoing the woes of Toyota, the manufacture of Pruis hybrid also announced a plunge in its profits. The executive Vice President of Toyota Satoshi Ozawa said, "In Japan and North America, vehicle sales decreased severely compared to the same period last fiscal year due to the large impact of the Great East Japan Earthquake".
Even though the manufacturer has succumbed to losses, Toyota has promised that it will perform well in the domestic market by producing 3 million cars in a year. However, it will be reducing its exports by 50% as the international markets are not performing well.
Besides, the global crisis has further jeopardized the financial condition of many firms. It is hoped that in the coming future the companies would be able to recover their losses.
United Kingdom News
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