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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.

Texas teen is 10th Takata airbag victim

A 17-year-old high school senior from Richmond, Texas, died in a 2002 Honda Civic on March 31 after the Takata-supplied airbag inflator ruptured. This is the 10th fatality linked to the faulty parts in the US. Honda and US regulators confirmed that the airbag exploded, according to Reuters. The fatal incident occurred when the Civic's driver rear-ended a Honda CR-V. The teen was wearing a seatbelt and wasn't speeding. "Everybody should have walked away from this," Fort Bend County Sheriff's Deputy Danny Beckwith told Reuters. However, a piece of shrapnel from the inflator cut the driver's carotid artery, and the person died. With this latest fatality, there have been 10 deaths and over 100 injuries in the US from exploding airbag inflators. Nine of the deaths have happened in Honda vehicles. The other was in a Ford Ranger pickup. Investigators at the Independent Testing Coalition placed the cause of the explosions on a combination of the inflator's chemical, design, and the weather. The ammonium nitrate propellant can explode with additional force when exposed to moisture, like in high humidity areas. The part's construction is also part of the problem because it allows this humidity to access the chemical. Takata has recalled roughly 24 million airbags in 19 million vehicles in the US. The latest tally from the National Highway Traffic Safety Administration showed that as of March 11, 2016, about 7.5 million inflators have been replaced. All the parts with ammonium nitrate inflators may need replacing someday, which could affect 100 million vehicles. Related Video: Statement from Honda Concerning Confirmed Texas Rupture Statement from American Honda Motor Co., Inc. Re: Confirmed Rupture of Takata Airbag Inflator in Fort Bend County, Texas Statement date: April 6, 2016 During an inspection today, accompanied by representatives of the National Highway Traffic Safety Administration (NHTSA), the Sherriff's Department of Fort Bend County, Texas, and Takata, American Honda confirmed that the Takata driver's airbag inflator ruptured in the crash of a 2002 Honda Civic on March 31, 2016, in Fort Bend County, Texas, resulting in the tragic death of the driver. Our thoughts and deepest sympathies are with the family of the driver during this difficult time. Honda has shared all available vehicle history information collected to date with NHTSA and will continue to cooperate with NHTSA throughout the process of investigating this crash.

Automakers score 8 out of top 20 most-watched ads on YouTube [w/videos]

Who would have ever thought there'd be a day where people are able to skip television commercials only to go to websites to watch them later? Such is the joy of a DVR and YouTube. AdWeek tabulated the 20 most-watched ads on YouTube, and found that nine were car-related including eight coming from automakers.
Volkswagen continued its Star Wars theme with two ads in the top 20, including the highest-ranking car commercial The Bark Side spot at number three with almost 18 million views, which doesn't even have a single car in it. Some of our favorites are from Chrysler with Clint Eastwood in It's Halftime in America and House Arrest with Charlie Sheen for the Fiat 500 Abarth. Chevrolet, Honda, Audi and Toyota were the other automakers in the top 20, but we'd be remiss if we didn't at least mention one of the coolest ads on the list, the Hot Wheels corkscrew jump.
Of all the car videos, only the Fiat ad wasn't played during a Super Bowl. Check out all eight videos - in order - after the jump. Nike took the top spot with its My Time is Now ad that has been seen online more than 20 million times with Pepsi's Uncle Drew posted up in the runner-up; some of the other videos include four Old Spice commercials and an ad in which Snoop Dogg is pedaling Hot Pockets.