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Japan’s Automotive Industry Bounces Back

Posted on by Debra Lefler in Customer Service | Comments Off on Japan’s Automotive Industry Bounces Back

As the yen continues to weaken, the country’s automotive industry is enjoying a surge unlike anything it’s experienced before. All the Japanese automakers are shirking off half a decade of trials and are now in a golden age of record profits.

More Money to Spend

Japan’s AutomotiveThe mounting stores will last the companies through another downturn, if ever one occurs, as well as give them more leeway to invest in new factories, R&D, adding content, hold off on price increases, or add more incentives for their products.

In fact, the stores are so large that Toyota is planning to spend a record amount on R&D, a whopping $8.55 billion, that’s more than General Motors’ 2013 income of $3.77 billion. Even Honda is forecasting a 13% rise on R&D spending for the current fiscal year, amounting to $5.99 billion.

More Money to Come

Four companies – Toyota, Mazda, Mitsubishi, and Fuji Heavy Industries, the parent company of Subaru – are forecasting net profits rise of more than 20 percent for the entire fiscal year.

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