Honda posted a $74.3 million profit for the quarter that ended June 30, but the Japanese automaker says that its North American market is in a tougher spot than the figures would indicate. Regional earnings were hurt in part due to declining production that boosted the automaker’s fixed costs.
North America, typically Honda’s most profitable market, will unlikely break 1.3 million units during the full fiscal year that ends March 31, 2010. Previously, Honda had predicted sales would be at around 1.35 million cars.
Worldwide, Honda ’s operating profit fell 88 percent to $263.7 million during the quarter. Honda has recently upped some production and has seen some sales success in its home market from the Insight hybrid, so it has increased its global sales projection from 3.21 million cars to 3.295 million.
Meanwhile, Honda announced a recall of more than 300,000 U.S.-built Civic and Accord sedans and coupes to fix airbag deflators that could produce excessive pressure. The deflators, made by Takata Corporation,were installed in about 306,000 North American-market 2001 model year Accords and Civics, as well as 1,500 Japanese market cars.
The airbag deflator was not used by other automakers or in other Honda model years.
