Honda works to achieve manufacturing cost reductions as yen strengthens While many global automakers suffered in the aftermath of the supply chain crisis emanating from Japan, Tokyo-based Honda said this week that it expects its profit to rise through the end of the year.

In the three months that ended June 30, Honda said that its profit plummeted by 88 percent as a result of continued troubles resulting from the country’s supply chain crisis. While Japan has moved to overhaul its strategic sourcing in the interim and achieve business cost reductions, company officials are confident that the latter half of the year will prove profitable.

The Wall Street Journal reports that although Honda’s profit fell precipitously from year-ago levels, it still exceeded the expectations of analysts. Honda chief financial officer Fumihiko Ike told reporters this week that the company is confident that the company has weathered the worst of the crisis.

"It won’t get worse any more,” he said, noting, “our vehicle production is coming back."

The strength of the yen against the dollar contributed to its downturn in profit, according to analysts. As a result, Honda is considering opening a manufacturing facility in Mexico as it works to log manufacturing cost reductions.

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