Obviously, cutting output and shelving programs is not sufficient in assisting Honda endure the ongoing economic crisis. For the first quarter of this year, Honda reports a $2.9 billion loss; it’s first in 15 years. Compared with $1.75 billion profit from first quarter of last year, this is quite a large fall indeed.
Although the unfavorable exchange rates has hit the company’s operating income, the losses was brought about largely due to a worldwide falling of sales, a high percentage of which happened in North America. Worldwide Honda sales reached 680,000 units in the first three months of this year representing a 35.3 percent decreases compared to last year.
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