Honda forecasts 70% net profit drop citing 'tariff impact'

I guarantee you all the execs and the CEO will still get bumper pay packets and bonuses.

A 70% net profit drop is pretty significant.

"Our automobile business experienced a decline in sales volume mainly in China and the ASEAN region" in Southeast Asia, Mibe said.

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Maybe Japan’s rich corporations should reduce their prices to match Chinese autos?

It's mainly paper losses, write downs of assets, cash flow a far better story. Honda will survive and transition to EV and tech-based transport, unlike Nissan which needs to be saved by a third party

And in wonderful news, Honda is moving production to the USA.

from Canada.

Why, you ask?

because of Trump’s tariffs.

another win!

All legacy auto makers have over capacity in ICE engine factories, so they're being written down, these assets are impaired, as ICE engines going the way of the dodo bird!

Well run legacy companies like Honda, have relatively smaller write-downs, vs. Nissan, with lots of production over-capacity in China, where consumers only want EVs

Japanese auto companies going down, less profit, make less cars

These dire forecasts are often worst-case scenarios to arouse sympathy and pacify the tax authorities. As Trump back-pedals on tariffs however, things should improve a little.