Leading Japanese truck maker Hino Motors has downgraded its annual earnings forecast into negative territory, citing recalls and other extra costs after it falsified emissions and fuel economy data.
The Japanese government on Tuesday retracted safety certification for buses and trucks fitted with four types of engines made by Hino. The certifications were based on falsified data.
Hino plans to recall more than 46,000 trucks.
The company says compensation to dealerships, suppliers and other clients in North America will be larger than it initially expected.
The truck maker had to halt production in the region for 10 months because the engines it had shipped there didn't meet regulatory standards.
Hino now predicts a net loss of 54 billion yen, or roughly 440 million dollars for the fiscal year ending in March, down from the previous forecast net profit of 120 million dollars.
Vehicles powered by the decertified engines account for 35 percent of Hino's domestic sales. The company will not be able to build those models again until it gets them certified, making it unavoidable for Hino to struggle in the new business year.
The Japanese government on Tuesday retracted safety certification for buses and trucks fitted with four types of engines made by Hino. The certifications were based on falsified data.
Hino plans to recall more than 46,000 trucks.
The company says compensation to dealerships, suppliers and other clients in North America will be larger than it initially expected.
The truck maker had to halt production in the region for 10 months because the engines it had shipped there didn't meet regulatory standards.
Hino now predicts a net loss of 54 billion yen, or roughly 440 million dollars for the fiscal year ending in March, down from the previous forecast net profit of 120 million dollars.
Vehicles powered by the decertified engines account for 35 percent of Hino's domestic sales. The company will not be able to build those models again until it gets them certified, making it unavoidable for Hino to struggle in the new business year.
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Summary
Japanese truck manufacturer Hino Motors downgraded its annual earnings forecast to a net loss, due to recalls and additional costs from falsified emissions and fuel economy data. The Japanese government withdrew safety certifications for buses and trucks equipped with four engine types made by
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ID: 6243d727-bbfc-479e-9e1c-3e9fc0a80b98
Category ID: nhk
URL: https://www3.nhk.or.jp/nhkworld/en/news/20220330_19/
Date: March 30, 2022
Created: 2022/03/30 13:05
Updated: 2025/12/09 17:21
Last Read: 2022/03/30 13:05