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Honda reports $2.3 billion profit despite pandemic

TOKYO — Japanese automaker Honda reported Friday that its profit rose 23% in the last quarter, despite a pandemic that has slammed businesses around the world. Tokyo-based Honda said its July-September profit was 240.9 billion yen ($2.3 billion), up from 196.5 billion yen a year earlier, as the auto market recovered in some parts of the world. Honda said it carried out aggressive cost cuts that involved a “fundamental review” of its operations. The situation was also improving from earlier this year, when lockdowns and other problems related to COVID-19 caused disruptions of some production and an inventory crunch. Quarterly sales slipped to 3.65 trillion yen ($35 billion) from 3.73 trillion yen the same period a year earlier. Honda warned that uncertainty remains amid rising COVID-19 cases. But the company stressed it was managing to cling to profitability. Reflecting that upbeat mood, Honda raised its profit forecast for the fiscal year through March 2021 to 390 billion yen ($3.8 billion) from an earlier projection for 165 billion yen ($1.6 billion). The latest forecast is still lower than the 455.7 billion yen profit Honda booked in the previous fiscal year. Honda sold slightly more vehicles in the quarter through September at 1.25 million vehicles, compared to 1.24 million vehicles in the same period of 2019. But it sold fewer motorcycles at nearly 4.5 million motorcycles, down from nearly 5.1 million. Kohei Takeuchi, a senior Honda manager, said much of the damage to sales likely came from the pandemic, though he hesitated to blame the entire decline on the pandemic. Executive Vice President Seiji Kuraishi told reporters Honda is bullish on shifting its lineup to ecological models to keep up with the global efforts to curb carbon emissions and global warming. Also Friday, Toyota raised its full year fiscal forecasts to a 1.4 trillion yen ($13.5 billion) profit, after reporting results that appear to show a gradual but sure recovery. Its profit fell 11% in the last quarter. Nissan reports financial results next week. Related Video: Earnings/Financials Acura Honda

Bisimoto's 911 and Honda Odyssey each pack 1,000 hp

There aren't a lot of vehicles on the road that pack a thousand horsepower. The Bugatti Veyron and McLaren P1 are in rare company, but there have been a handful of aftermarket tuners that have managed to extract that much power out of lesser vehicles. Bisimoto is responsible for more than its fair share, so Matt Farah and the team at Drive stopped by the workshop in Southern California to check out the craftsmanship for the latest episode of Tuned. What they found is two vehicles with that astronomical four-figure output that otherwise couldn't be more different from each other. First up is the vintage, stripped-out 911 that company founder Bisi Ezerioha built for himself. It's based on a 1976 Porsche 911 Carrera with a widebody kit and a pair of turbochargers hanging off the back. The result is that thousand-horsepower output and, as Farah found out, one of the scariest, hairiest, and squirliest automobiles ever devised. As if that weren't enough, there's a thousand-horsepower minivan on the docket, too. This one is based on a Honda Odyssey, rebuilt on an air suspension and a six-speed manual gearbox conversion out of an Acura TL. And of course the engine's been tuned to deliver that headline output figure. Honda and Bisimoto showcased the vehicle at the SEMA show a couple of years ago, where Farah says he didn't think it could possibly hold together. But as he discovered in the video above, it actually does, and accelerates with tenacity... and plenty of room for the kids.

Beleaguered Takata unlikely to seek automaker assistance

Takata is continuing to deal with the massive airbag recall for millions of vehicles, but even if it doubles production, it could take years the company to build enough replacement parts to properly repair all of the affected models. If the supplier takes a hard enough financial hit whether through fines, lawsuits or just the cost of making the components, then the business might not be able to keep up production. Such a situation could put automakers in the very difficult predicament of deciding whether to provide Takata with financial assistance. Honda for one has little interest in lending further support to the beleaguered supplier, according to The Wall Street Journal. The Japanese automaker recently dropped its annual sales targets to put a larger emphasis on vehicle quality, partially in response to the inflator recall. It also struck a deal with another company for replacement parts and was rumored to abandon Takata for some future business. Honda CEO Takanobu Ito did leave the door barely cracked for possible aid. "Takata itself needs to figure out how to fulfill its duties, but if it makes any request to automakers, then we would think about that," he said, according to The Wall Street Journal. There isn't much likelihood of Takata needing a bailout, though. According to The Wall Street Journal, analysts aren't concerned about the company's short-term fortunes, and the supplier had about $728 million in cash as of last September. News Source: The Wall Street Journal - sub. req.Image Credit: Toru Yamanaka / AFP / Getty Images Earnings/Financials Recalls Honda Safety Takata airbag recall