Reply #8: Honda slashes forecast again, outlines counter-moves [View All]

[ozymandius]

TOKYO (Reuters) – Japan's Honda Motor Co issued its third profit warning this year, slashing its operating forecast by two-thirds as the global recession batters car sales and sends the yen soaring.

The deeper-than-expected revision at Japan's No.2 automaker could touch off similar moves at domestic rivals Toyota Motor Corp and Nissan Motor Co, also reeling from the dollar's fall to 13-year lows against the yen.

Automakers everywhere are under enormous pressure to cut costs and save cash to weather the storm as tight credit and weak consumer sentiment hammer demand.

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Honda also said it would cut capital spending, delay new plants and product launches and reduce its third-quarter dividend. It will also review bonus payments for directors, and cut their monthly salaries by 10 percent from January.

http://news.yahoo.com/s/nm/20081217/bs_nm/us_autos