Nissan, Honda see profits jump, lift outlook

STORY: At least two of Japan’s big carmakers enjoyed a strong quarter.

Nissan on Wednesday (November 9) reported a 45% jump in profit.

It was helped by cost-cutting, higher-margin sales and the weaker yen.

That took second-quarter operating profit to around $630 million.

The company raised its full-year forecast by almost 50% as a result.

However, talks over its alliance with Renault remain uncertain.

No agreement is now expected before a deadline next week.

The talks are likely to see Renault reduce its stake in Nissan, while the Japanese firm may take a stake in its partner’s new EV unit.

But Reuters sources say Nissan has expressed concerns over sharing technology.

Meanwhile, Honda also saw profits jump.

They were up 16% over the second-quarter, hitting almost $1.6 billion.

It too was helped by the weak yen, which boosts the value of its overseas earnings.

The firm also saw strong sales for its motorcycles unit.

Honda too raised its outlook for the year, citing factors including the yen and moves to boost profitability.

However, it said chip supplies and lockdowns remained a drag.

They led to parts shortages which forced it to cut output at two factories.