The global car market may be starting to show signs of recovery, but most automakers are still suffering from a post-crash hangover. Mazda and Mitsubishi are two such companies, posting half-year net losses earlier on Thursday.
Both Mazda and Mitsubishi – Japan’s fourth and fifth largest automakers, respectively – reported half-year net losses on Thursday, citing falling sales and the strong value of the yen. Mazda reported a net loss of $230 million – down from a profit of $325 million a year earlier – while Mitsubishi’s net profits were $403 million in the red.
Mazda ’s sales were hit hard by falling sales, mainly in more established regions such as North America and Europe. The automaker’s sales dipped 21 percent in North America with European sales dropping off 31 percent in the April-September period. However, Mazda saw strong growth in China, boosting sales by 35 percent.
Mazda expects a full-year loss of $187 million.
Mitsubishi also suffered from sagging sales in the period, reporting a North American drop off of 35 percent and a European slide of 44 percent. However, Japan sales were not as bad, sliding a mere 8 percent.
Despite its global sales declines, Mitsubishi expects to post a yearly profit of $55 million.
