Currently reading: Honda profits plunge

Global recession hits Honda sales

Honda’s annual profits have plummeted by 77 per cent after a decline in car sales.

Japan’s second-largest car maker posted a new profit of 137bn yen (£981m) for the year to March 31, compared with 600bn yen (£4.3bn) a year earlier.

Sales have fallen by 17 per cent to 10 trillion yen (£75.1bn), which was Honda’s first decline in nine years.

Forecast profits will also drop 71 per cent in the year ending March to 40bn yen (£285m), from 137bn yen (£981m) a year earlier.

Honda has been carrying out a number of cost-cutting measures in the UK in a bid to save money.

The Swindon factory shut for four months in February, and Honda ended its involvement in Formula One.

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