Mazda Motor’s net profit fell by about two-thirds in the latest half-year period as the Japanese carmaker spent more to boost sales in North America.
The company says group net income fell to 35.3 billion yen, or about 230 million dollars, in the six months ended in September. That’s down 67.3 percent.
But sales picked up in the period. They amounted to about 15.6 billion dollars, up 3.3 percent from a year earlier and a record high.
Mazda attributes the profit drop to increased sales incentives at its North American dealerships. Another major factor was a decline in demand in its home market as well as countries including China.
This prompted the company to reduce its sales and net profit forecasts for this fiscal year.
President and CEO, Mazda Motor Moro Masahiro said, “In response to major changes in the business environment, we will work on initiatives that need to be taken, including cost reductions, without delay.”
He also touched on the impact of the US presidential election. Donald Trump during his campaign pledged to impose tariffs on automobiles. Mazda exports about 60 percent of its cars produced in Mexico to North America.
Moro said it is not an issue to be resolved by one company alone, but a trade issue to be clarified by the countries involved.
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Publish date : 2024-11-07 17:23:00
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