Honda Posts First Half-Year Operating Loss In 11 Years

Illustration for article titled Honda Posts First Half-Year Operating Loss In 11 Years

If anyone needed proof the Carpocalypse is affecting all the automakers, Honda, the mighty stalwart of profitability, has announced a half-year operating loss of $1.4 billion. It's their first in 11 years.

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That half year loss is made up for by a first half year profitability of $2.0 billion dollars, but if there's a stronger sign the market has fallen apart we've yet to see it. Honda CEO Takeo Fukui said "We see no sign of a recovery." Don't know about you folks but when Honda loses money and says things may not recover, we kinda take that as a bad sign.

We expect Senators Bob Corker and Richard Shelby to berate Honda for being a failure of a company, incapable of building innovative products that Americans want to buy and lagging behind their foreign competitors. Obviously they're not worthy of anyone's sympathy. [Forbes]

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DISCUSSION

timtoolman
Timtoolman

Still, it was bound to happen. What happens in America does not stay in America. Hardly a ripple effect; this is a tidal wave.

Honda stands out because their game plan seemed to be overly conservative compared to the aggressive model Toyota was using for total world domination. Even when Toyota first started showing double-digit decreases, Honda bucked the trend and reported a modest sales gain. Of course, it was only a matter of time before the dominoes fell their way.