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Honda profit declines on semiconductor crunch and raw material costs

TOKYO — HondaÂ’s fiscal first quarter profit fell 33% from last year as a global computer chip shortage, a pandemic-related lockdown in China and the rising costs of raw materials hurt the Japanese automaker. Tokyo-based Honda Motor Co. reported Wednesday that its profit totaled 149.2 billion yen ($1.1 billion) in the April-June quarter, down from 222.5 billion yen ($1.7 billion) a year earlier. Quarterly sales slipped 7% to 3.8 trillion yen ($28 billion). Honda kept its profit forecast for the full fiscal year through March 2023 unchanged at 710 billion yen ($5.3 billion). The semiconductor shortage has hurt all the worldÂ’s automakers, including Honda, despite strong demand, and the manufacturers have been scrambling to secure alternative suppliers. Honda, which makes the Accord sedan, Odyssey minivan and Civic compact, sold about 815,000 vehicles last quarter, down from 998,000 vehicles the same period a year earlier. Auto sales dropped in almost all regions around the world, including Japan, the U.S. and Europe. “I ask for the understanding from all those who are still waiting for their vehicles and vow that our whole company is doing its utmost to make the deliveries even a day sooner,” Chief Financial Officer Kohei Takeuchi said. Takeuchi said the semiconductor shortage curtailed motorcycle production as well as car production, adding to uncertainty about future prospects. Honda said the recent lockdown in Shanghai was among the causes of the shortage in computer chips supply but declined to give specifics. Although U.S. sales are potentially facing a dent from recession worries and other economic hardships, Takeuchi acknowledged he was more worried about the shortage problem and producing the cars customers were waiting for. Takeuchi noted that motorcycle sales for the quarter, which grew to 4.25 million motorcycles from 3.88 million a year earlier, were going strong, especially in India. The cheaper yen and cost cuts helped maintain profitability overall, he added. The yen has been at a two-decade low against the U.S. dollar. A cheap yen has historically worked as a boon for exporters like Honda by boosting the value of their overseas earnings when converted into yen. But it also increases costs for imported components and materials. JapanÂ’s top automaker Toyota Motor Corp. reported recently that its fiscal first quarter profit fell nearly 18%. Nissan Motor Co. saw its quarterly profit plunge to less than half of what it was a year earlier.

Honda to compete in seven Pike's Peak classes in 2014

The Pikes Peak International Hill Climb is one of the greatest events on the international motorsports calendar. Its Unlimited class harkens back to the old days of racing, when teams built vehicles to be the fastest with whatever they had. Honda is returning to the event for 2014 for its second year as a sponsor and participant, and it's bringing some cool machines of its own.
The company is fielding seven entrants this year, which is somewhat smaller than last year. In 2013, it brought 11 factory-supported vehicles in 10 classes, including an insane Honda Odyssey with a 532-horsepower turbocharged V6 engine. There's no need to be too disappointed by the shorter list, though. Former 24 Hours of Le Mans-winner Romain Dumas is back piloting a Honda-powered Norma chassis up the hill in the Unlimited class. Dumas attempted to race the car last year, but it broke down during his run. Other competitors include an NSX (pictured above), Fit B-Spec and an S3700, which is an S2000 with a 3.7-liter V6 engine.
In its role as sponsor, Honda says it has also worked with the sanctioning body to add an AirFence safety barrier along some corners for the motorcycle and ATV riders. This year's Pikes Peak is being held on Sunday, June 29. Scroll down to read the full details about Honda's team and start getting excited for this year's running.

Carjacking attempt foiled by pesky manual transmission

A St. Louis man lucked out last week when a pair of carjackers abandoned his Nissan Altima because it had a manual transmission. According to KMOV, Dustin French was on his way back to his Benton Park home from a gas station around 11 PM on October 13th. When French pulled up to the curb outside of his home a silver Honda Accord quickly pulled in behind him. A passenger then hopped out, approached him, and flashed a gun. "A car came up right behind sort of half parallel parked behind me. A passenger got out with a firearm, told me to get out of my car and empty my pockets," French told the news station. Since he was alone at night and the nearest streetlight was burned out, French decided that discretion was the better part of valor and did as he was told. "All I got out luckily were my keys and I said what do I do now. I was asking for orders," French told the station. "He said get up and walk away. Face away and keep walking." French complied with the carjacker's demands. "I'm glad I didn't panic or threaten violence or make any quick moves," French said. "Kept my wits about me as best as I could. Asked thieves for instructions on what to do to prevent harm to myself." But then a strange thing happened. The carjackers apparently left French's car behind and took off without stealing anything. French told KMOV he believes that they did so because his car has a manual transmission and the gunman, who St. Louis Police say was in his late teens or early-20s, couldn't drive one. Thankfully, French wasn't hurt and his Nissan is still safely in his possession. Related Video: News Source: KMOV Auto News Weird Car News Honda Nissan Safety carjacking stick shift accord