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West Coast labor dispute hampers Japanese automakers' US plants

The ongoing labor dispute between the International Longshore and Warehouse Union and port owners along the West Coast is starting to affect more Japanese automakers building vehicles in the US. The issue already forced Honda and Subaru to take the expensive option of airlifting some parts into the US weeks ago, and according to USA Today, Toyota and Nissan have begun doing so, as well. The choice hasn't been cheap, though, and Subaru's chief financial officer estimated that the decision cost around $60 million more per month than sending components by cargo ship. The effects continue to radiate, according to USA Today, and shortages of some models are possible. Honda is slowing production at its factories in Ohio, Indiana and Canada because the automaker doesn't have enough transmissions and electronics for some vehicles. Toyota already cut back on overtime at some factories. Nissan has only seen a small effect from the issue, though, because of its local suppliers. Dock workers and port owners have been negotiating on a new contract since last year, and the union has organized work slowdowns in response. According to USA Today, the automakers could move shipments to Canada or Mexico, but it would take longer for parts to arrive. News Source: USA TodayImage Credit: Mark Ralston / AFP / Getty Images Earnings/Financials Plants/Manufacturing UAW/Unions Honda Nissan Subaru Toyota shipping port labor dispute

Honda sees sales up but profit sliding 16 percent in 2017-18

TOKYO - Honda forecasts a 16 percent fall in operating profit for the current financial year as the Japanese automaker sees higher auto sales being offset by a stronger yen and research-and-development costs. Japan's No. 3 automaker said it expects an operating profit of 705 billion yen ($6.34 billion) in the current FY2018, down from 840.7 billion yen posted in the fiscal year just ended, and lower than an average estimate of 850.8 billion yen from 23 analysts polled by Thomson Reuters I/B/E/S. It sees a 14 percent slide in net profit to 530.0 billion yen this year, down from 616.5. Honda's projections are based on a forecast that the yen will average 105 yen to the U.S. dollar through next March, stronger than the 108 yen rate in the year just ended.BUT CAR SALES ARE UP At the same time, there's good news as Honda expects its global vehicle sales to edge up 1 percent to 5.08 million this year, bolstered by growth in Asian sales to 2.06 million units, beating out North America to become Honda's top market as more Chinese drivers flock to its cars. The company expects to sell 1.92 million vehicles in North America, 2.5 percent less than the year just ended as it struggles to sell sedans including the Accord, which have fallen out of fashion in the past few years. Honda has been ramping up production of SUVs to keep up with strong demand for larger models in the United States, although overall vehicle sales show signs of slowing following a boom cycle after the global financial crisis. Mazda is taking a similar strategy, announcing on Friday it would expand production of SUV crossover models at home, while equipping overseas plants to enable more flexible production of models according to market needs. Japan's No. 5 automaker forecast a 19 percent jump in operating profit for the current financial year as it expects higher sales volumes, particularly in North America, to help it recover from last year's profit slump.A CONSERVATIVE OUTLOOK Executive Vice President Seiji Kuraishi acknowledged that Honda's expected currency hit of 95 billion yen was based on a "conservative" yen forecast, adding that growing costs to create next-generation cars would also impact earnings. "Our costs are rising to develop new technologies which will be needed in the future, like automated driving functions and electric cars," he told reporters at a results briefing.

Surprise! McLaren and Honda finally call it quits

It's been coming for a long while, so it should surprise no one to learn that McLaren and Honda have finally called it quits. Sources confirmed to Motorsport.com and Sky Sports that the two companies have finally settled on a deal that will end a partnership that has been nothing but heartache and tears. McLaren has reportedly inked a three-year deal to use Renault engines, ending in 2020 along with the current engine regulations. This also means McLaren driver Fernando Alonso is likely to extend his contract beyond the end of this season. When Honda first announced it was returning to F1 with McLaren, fans had visions of Fernando Alonso and Jenson Button reliving the glory days of Ayrton Senna and Alain Prost in the late 1980s. The truth couldn't be further removed. At points, McLaren has struggled to make it the full race distance, much less win races and fight for championships. Frankly, it's been embarrassing for both Honda and McLaren. No one comes out a winner here. Honda has sullied any reputation it had in F1, while Alonso's talent and McLaren's engineering expertise were both wasted the past few seasons. According to Motorsport.com, McLaren will get the same engine parity as the factory Renault Sport team as well as Red Bull Racing. Assuming that McLaren can provide a competitive chassis, that should vault it at least into the middle of the pack. Team principal Zak Brown hasn't been quiet about his frustrations. After both McLaren drivers failed to finish in Italy, Brown told Sky Sports, "We need to get more competitive. This weekend showed we're not making any significant progress." Meanwhile, Toro Rosso will switch from Renault to Honda power, with Toro Rosso driver Carlos Sainz Jr. making the move to Renault. What that means for Red Bull's junior team is unclear. Related Video: This content is hosted by a third party. To view it, please update your privacy preferences. Manage Settings.