Honda and Nissan hope chip shortage will end by the end of this half

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Honda and Nissan hope chip shortage will end by the end of this half

Japanese companies Honda Motor and Nissan Motor reported their fiscal third-quarter results, complaining about chip shortages, but noted an increase in demand for cars, which improves the forecast for the entire fiscal year. According to their estimates, the industry will overcome the deficit of chips already in May or June of this year.

Nissan

Honda improved its forecast for net profit for the outgoing fiscal year to $ 4.4 billion, according to the Nikkei Asian Review. This allows the Japanese automaker to expect its 12-month reporting period ending in March to be more successful than the previous one. Net income will grow by a couple of percent, which is not bad for a challenging year.

Because of the ongoing restructuring, Nissan Motor is forced to predict only net losses. Still, they will not exceed $ 5 billion at the end of the fiscal year against the $ 5.9 billion expected earlier. The company predicts that by the end of the fiscal year, it will sell 4.01 million vehicles – 3.6% less than it expected in November last year. Honda representatives added that if it were not for the shortage of semiconductor components, its net profit for the current fiscal year would have been higher than in the previous one. This would make it possible to compensate for the losses caused by the pandemic, but in reality, this will not be achieved. Honda cut its forecast for the number of vehicles sold in the current fiscal year from 4.6 to 4.5 million units.

According to representatives of Honda, the loss in production of 100 thousand cars may fall entirely in the first calendar quarter. According to this automaker, the shortage of components will cease to affect its business in April. Nissan says the semiconductor shortage problem will be eliminated across the industry by May or June. This manufacturer has suffered from declining demand due to the pandemic for longer than its Japanese competitors. While Toyota and Honda were back to pre-crisis sales by September, Nissan could not do so until December.

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