Honda is hit hard by the corona crisis. The Japanese brand recorded a loss of hundreds of millions in the past quarter. It also says that the pandemic is expected to cost the company a total of more than € 5 billion this year.
The second quarter of 2020 will be quite bad for many car manufacturers, of course largely due to the corona pandemic. That while the sales for many brands were also somewhat in decline. It is no different at Honda; As many as 40 percent fewer cars were sold worldwide last quarter than in the same period last year. The counter stopped at 792,000 cars. Only 16,000 of them came on a European registration. That is 53 percent less than last year.
Honda expects to sell 6.1 percent fewer cars worldwide this year than in 2019, which equates to 4.5 million cars. For the European market, the Japanese count on 105,000 cars sold, a decrease of 21 percent.
All of this is obviously not favorable for Honda’s financial results. At the bottom of the line, a net loss of € 635.5 million was incurred in the past quarter. For the rest of the year, Honda is nevertheless counting on enough liquidity to be able to cope with the crisis, although the pandemic will weigh on revenues for € 5.23 billion according to the latest estimates.