Subaru, Mitsubishi Cut Forecasts as Sales Cool
Subaru Corp. and Mitsubishi Motors Corp. are the latest Japanese carmakers to lower their sales and profit guidance, blaming sagging demand and a stronger yen.
Subaru’s unit sales rose 4% to 504,000 units in the first half of its fiscal year ending next April 30. Operating profit jumped 68% to 94.8 billion yen ($869 million).
But the company says its previous outlook in August has been tempered by unfavorable exchange rates, typhoon-related production disruptions in October and higher quality-related costs.
Subaru affirms its earlier guidance for full fiscal year sales of 1.06 million cars. But it lowered its operating profit forecast by 15% to 220 billion yen ($2 billion). The company now anticipates an annual net profit of 163 billion yen, down 22% from its previous outlook.
Mitsubishi cut its revenue forecast for the fiscal year by 5% to 2.6 trillion yen ($23.6 billion), down 3% compared with the previous fiscal year. The company also slashed its operating and net profit forecasts by two-thirds and 92% to 30 billion yen and 5 billion yen, respectively.
MMC says it its revised outlook is due primarily to slumping wholesales and a stronger-than-expected yen. The company anticipates full fiscal year unit sales of 1.27 million vehicles.
A Detroit-area company that panned the part-by-part quality of Tesla Inc.’s Model 3 electric sedan now believes the car can generate a 30% gross profit margin.
If you have any question about the almost certain inevitability of 48-volt electrical architecture in vehicles to facilitate the creation of mild hybrids for fuel economy and the utilization of electric superchargers for improved performance, then the number of companies that are pursuing these technologies ought to be an answer.
The common wisdom seems to be that midsize cars have pretty much had it in the U.S. new car market.