- Oct 31, 2006
Mitsubishi's red ink dwindles
Isn't this a scary time in the auto business? When most of the big players report only on their ability to cut losses instead of make profits? Or how many workers they have successfully "reduced their workforce by" (read: let go)? That's the good news! Will we ever see a consistent return to profitability in the business of selling cars?
And so, we bring you yet another announcement about reduced losses. Aided by a weaker yen and increased sales in Japan and North America, Japan's troubled Mitsubishi Motors on Monday reported a narrower net loss of 16.1 billion yen ($137 million) for fiscal first-half of '06 compared to a loss of 63.8 billion yen ($544 million) during the same period in '05. Sticking to its forecast to return to profitability for the full fiscal year in 2007, the company also said on Monday that it would reduce its unit sales volume target down 86,000 vehicles to 1,322,000, reflecting expectations of fewer sales in parts of Asia, while sales are expected to increase in North American and Europe.
Can Mitsubishi return to profitability in 2007? They do have some decent new products in the market with more on the way. Only time will tell.
[Source: Detroit News]