Hua Er Jie Jian Wen·2025-05-13 12:04Core Viewpoint - The automotive industry, particularly Japanese automakers Honda and Nissan, is facing significant financial challenges due to the impact of U.S. tariffs on imported vehicles and parts, leading to disappointing earnings reports and grim future forecasts for profitability and revenue. Group 1: Honda's Financial Performance - Honda's Q4 operating profit plummeted over 70% year-on-year, with a full-year operating profit decline of 12.2% and a net profit drop of 24.5% [1][3][8] - For the fiscal year ending March 2026, Honda expects a nearly 59% decrease in operating profit, a 70.1% drop in net profit, and a 6.4% decline in revenue [9][10][11] - Honda's Q4 revenue was 5.36 trillion yen (approximately $47.26 billion), aligning with expectations, but the operating profit of 735 billion yen fell significantly short of the anticipated 2.755 trillion yen [4][5] Group 2: Nissan's Financial Challenges - Nissan announced it would not provide an operating profit forecast for the fiscal year ending March 2026, citing tariff impacts and plans to close several production plants, resulting in a workforce reduction of 20,000 employees by fiscal 2027 [1][15] - The company reported a full-year operating profit of 133.71 billion yen, below the expected 138.5 billion yen, with significant losses in North America and Europe [13][14] - Nissan's Q4 net loss was 676.05 billion yen (approximately $4.6 billion), far exceeding the forecasted loss of 128.85 billion yen [14] Group 3: Broader Industry Impact - The global automotive industry is experiencing widespread effects from tariffs, with European automakers like Mercedes-Benz and Stellantis also retracting their performance guidance due to supply chain disruptions and increased vehicle prices [1] - U.S. automakers General Motors and Ford are also facing substantial financial losses due to tariffs, with GM estimating a $5 billion exposure and Ford projecting an annual loss of $1.5 billion [2] - The uncertainty surrounding tariffs has made it difficult for companies to provide reliable forecasts for their business developments [1]