Honda Motor Co. ran up a $1.9 billion loss during the fourth quarter of the Japanese fiscal year because of lower revenues, higher raw materials costs and unfavorable currency trends.
Honda managed, however, to show a $1.4 billion profit for the year ended on March 31 when it reported its full-year results Tuesday.
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Dagens Industri the Swedish business magazine reported today that Ford is in talks with an unnamed Chinese car company, whom is believed to be Shanghai Automotive Industry Corp. to spin off it’s Volvo division.
What this will bring to the Volvo nameplate, noone knows. Naturally it will seem like it’s cheapening the brand if it gets sold to the Chinese. According to major publications, investor Kirk Kerkorian, would like to see Ford rid itself of Volvo, which it purchased in 1999.
It is said that CEO Mulally has began to consider selling Volvo about a year ago. Several companies have been contacted regarding the offer including BMW and Mazda.
Volvo instead of meeting their targets of selling 200,000 vehicles by 2010, are said to be closer to approaching 90,000 vehicles. Head office is in the midst of asking unprofitable dealers to leave the franchise, thereby cutting about 20% of it’s dealerships in the U.S.
Ford said to cut about 2,000 jobs across the board from the operations of Volvo in midst of it ending it’s quarter with a $151 million loss.
Winnebago, the not so popular anymore maker of large, luxurious RV’s has reported it’s quarterly sales are down a staggering 73% from last years numbers.
Based in Iowa, net profits have stumbled to around $3 million down from $11 million a year ago.
They blame the reduction of discretionary spending, reduction of consumer confidence and record high gasoline prices as the cause. The tightening credit market was also partially blamed.
Overall sales have dropped to just over $139 million from $231 million. The RV industry seems to be in it’s 4th straight year of slumping sales.
Winnebago is fighting the situation with reducing it’s overhead by the announcement to let go 30% of it’s workforce at it’s plant in Charles City, Iowa. Hopefully this move will revive the once extremely profitable company to it’s former glory.
