Honda Motor said it will begin gradually resuming normal operations at its North American vehicle assembly plants from Monday, a sign that production disruptions from a shortage of Nexperia chips are easing.
HMC faces shrinking Asian sales, rising EV losses and higher capex, pressuring cash flow and signaling potential downside ahead.
HMC's fiscal Q2 earnings and revenues fall short of estimates as weaker auto sales offset motorcycle strength, prompting a muted FY26 outlook.
I leave my existing "Hold" rating for Honda unchanged after reviewing its recent performance. HMC's Q2FY26 operating profit missed expectations with the Automobile division's underperformance; it is also cutting its full-year guide due to disruptions relating to chip supplier Nexperia. But its free cash flow more than doubled in the latest quarter. This makes it likely that a mid-single-digit forward dividend yield is achievable.
Honda's downgrade to its full-year profit outlook underscores the immediate pressure from U.S. tariffs and global chip shortages - but the deeper, longer-term challenge lies in intensifying competition from Chinese electric vehicle makers.
Honda announces a voluntary recall of 406,000 Civic vehicles with model years from 2016-2021 over faulty wheel nuts that may loosen and cause wheels to detach.
Honda is recalling 406,290 vehicles in the U.S. that have aluminium alloy wheels sold as accessories as the wheel may detach from the vehicle due to a manufacturing error, the U.S. National Highway Traffic Safety Administration said on Friday.
Honda Motor cut its annual earnings forecasts, citing a shortage of chips from Dutch supplier Nexperia, and reported lower first-half net profit due partly to U.S. tariffs.
Honda Motor said on Thursday it is developing a platform centred on mid-size hybrid cars and a hybrid system for large vehicles, as the Japanese automaker seeks to boost competitiveness amid a slower shift to fully electric cars.
India's renewable energy service company OMC Power, backed by Japan's Mitsui & Co and Chubu Electric Power , said on Monday that Japanese automaker Honda Motor has taken an equity stake in the company to jointly build clean energy storage batteries.
The Japanese government and some of the nation's top manufacturers have warned Vietnam that a planned ban on petrol-powered motorbikes in Hanoi could spark job losses and disrupt a $4.6 billion market that is dominated by Honda , according to documents reviewed by Reuters and seven people familiar with the matter.
Honda's dominance of Vietnam's motorbike market is under threat as Hanoi pushes for a rapid switch to electric vehicles in a boost to local EV maker VinFast , according to industry data and the findings of a consumer survey.