Now Honda Is Feeling the Pain, Too

Slumping sales and a strong yen force Japan's No. 2 automaker to slash its profit target by 62% after already cutting it just six weeks ago
Japan's auto giant Honda Motor president Takeo Fukui speaks for the year-end press conference at the company's headquarters in Tokyo on December 17, 2008 YOSHIKAZU TSUNO/AFP/Getty Images

Honda (HMC) had been tipped to weather the storm engulfing the auto sector better than most other carmakers. Analysts cited its penchant for fuel-efficient small cars and the absence of unpopular large models in its lineup. And while Honda trimmed earnings forecasts at its half-year earnings announcement on Oct. 28, it was by less than rivals, and the company still planned on making $5.5 billion this year.

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