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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 Civic Type R blitzes five iconic European circuits

European automakers habitually produce some of the best hot hatches. So it took the revival of a Japanese legend to beat them on their home turf when the Honda Civic Type R stole the front-drive lap record at the Nurburgring away from the likes of Renault and Seat. Volkswagen struck back and reclaimed the prize for Europe with the new Golf GTI Clubsport S, but rather than return to the Green Hell for another attempt, Honda took revenge on five other Grand Prix circuits across the continent. The campaign started in April at Silverstone, where three-time British Touring Car champ Matt Neal set a lap time of 2:44.45 in the wet, then returned once it was dry to beat his own time at 2:31.85. With the front-drive record at the home of the British Grand Prix now in hand, Honda moved on to Belgium, where factory driver Rob Huff tackled Spa-Francorchamps and its infamous Eau Rouge complex to set another lap record at 2:56.91. Then it was off to Monza, home of the Italian Grand Prix, where the Civic Type R – still mechanically unmodified and on road tires – set another record at 2:15.16 at the hands of World Touring Car Championship driver Norbert Michelisz. Former F1 driver Tiago Monteiro was supposed to tackle the Estoril next, until he was taken out of commission in a WTCC crash. So on short notice, the series' safety-car driver Bruno Correia stepped in and lapped the former home of the Portuguese Grand Prix in 2:04.08. The last record fell at the Hungaroring where Michelisz returned to the cockpit and set another front-drive lap record at 2:10.85 last week. This content is hosted by a third party. To view it, please update your privacy preferences. Manage Settings. Honda Civic Type R sets new benchmarks at five legendary European race circuits - Honda announces new benchmark times set by Civic Type R at five legendary European circuits - Lap times achieved in standard production car with no mechanical modifications - Benchmarks set at Silverstone, Spa-Francorchamps, Monza, Estoril and Hungaroring - Stars of Honda's WTCC and BTCC squad pilot Type R throughout five circuit campaign Honda's 'race car for the road' Civic Type R has crisscrossed Europe in an effort to set new benchmarks for front wheel drive production cars at five legendary circuits across Europe.

Honda to spool up turbos, workforce with F1 tech

Honda has had a longer and more tumultuous relationship with Formula One than just about any other automaker. It had only been building cars for four years before it entered F1 in 1964 as the first Japanese team in the series, winning its first race the following season but shuttering the program a few years later. Honda came back to power the likes of Williams and McLaren to several World Championships in the '80s and '90s, but things took a downturn when it started a partnership and ultimately took over British American Racing. After pouring untold billions into the effort, the economy tanked, and Honda ultimately sold the team, which subsequently claimed the championship - under new ownership and Mercedes power. Now Honda is gearing up to return in 2015 with a new turbocharged V6 hybrid powertrain it's supplying initially to McLaren, which in turn is switching back to Honda from nearly two decades with Mercedes.
So why return to F1 now? That's precisely what Autoblog asked Honda's Global President and Chief Executive Takanobu Ito (pictured above with McLaren chief Martin Whitmarsh) while visiting his office in Tokyo. While he wouldn't reveal specifics (like when his company's new engine would be available to other teams, as it most certainly will in the long run), Ito-san was clearly happy to discuss the motivation behind the move and the value he feels it brings to the company and its products.
Ito pointed toward the proliferation of motors within Honda's powertrains as a development he hopes to take to road from track