Although the global car market is beginning to show signs of recovery, some manufacturers are still suffering the effects of the Global Economic Downturn.
Two such companies are Japanese manufacturers Mazda and Mitsubishi, both posting half-year net losses over night.
As Japan’s fourth and fifth largest manufacturers respectively, the pair cited falling sales and the strong value of the yen for the loss.
Mazda reported a net loss of US$230 million – down from a profit of $325 million a year earlier – with a sales dip of 21 per cent in North America alone. European sales for the brand were down 31 per cent for the period between April and September.
However, it’s not all bad news for Mazda with strong sales in China actually growing by 35 per cent over the same time-frame.
In total, Mazda expects a full-year loss of $187 million.
Mitsubishi faced a similar dilemma with net profits some US$403 million in the red. The brand also suffered slow sales in the period with North American markets down by 35 per cent.
European sales were also slower than usual for Mitsubishi with a tumble of 44 per cent on the year prior.
In its home country of Japan, Mitsubishi fared much better with sales sliding only 8 per cent over the half-year period.
Despite its global sales declines, Mitsubishi says it expects to post a yearly profit of US$55 million.