Saturday, May 16, 2009

Honda CEO Hopeful about Automobile Industry in 2009-10 Fiscal Year

Automobile industry is suffering a lot due to the global economic recession. Leading car makers like Toyota and General Motors are facing operating loses due to huge fall in demand. General Motors even received government stimulus to survive in the market. Still, Takeo Fukui, the CEO of Honda, has expressed his hope to see a rise in demand in the second half of the current fiscal years ending to 2010.

Despite the economic recession, Honda Motor Inc. could successfully remain profitable in the last fiscal because of decreasing warranty costs. Fukui thinks that the current fiscal year would be better than the last year with demand increasing slightly.

Well, American government is trying heart and soul to come out of ongoing economic slowdown as soon as possible by investing in business companies in the form of stimulus and thus it seems that the condition might be improved very soon, but it is also true that there could be some dangers as well in future because the government is trying to solve the economic problem in an artificial way.

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Motor Trend