By KENTA NAKAMURA/ Staff Writer
November 6, 2025 at 15:20 JST
The Mitsubishi Motors Corp.’s logo (Asahi Shimbun file photo)
Mitsubishi Motors Corp. announced on Nov. 5 a net loss of 9.2 billion yen ($60 million) in the first half of fiscal 2025 from April to September, falling into the red from a net profit of 37.9 billion yen in the same period last year.
This marked the first time since 2020 that the company has posted a net loss in its interim financial results.
High tariff policies under U.S. President Donald Trump, along with fluctuations in the currency exchange rates, were blamed for squeezing profits.
To improve Mitsubishi Motors' cost structure, the company decided to indefinitely suspend its operations at its plant in Thailand.
The company reported sales of 1.261 trillion yen, down 3.5 percent year-on-year, and an operating profit of 17.2 billion yen, an 81 percent decline. The U.S. tariff policies reduced its operating profit by 27.7 billion yen.
The automobile unit sales from April to September in the United States fell by 20 percent compared to the same period last year, because the company curtailed low-margin models designed for corporate customers.
Currency fluctuations also reduced the net profit by 38.4 billion yen, mainly due to the stronger Thai baht because the company exports automobiles from its plants in Japan and Thailand.
To boost cost reductions in Thailand, the company decided to suspend production around mid-2027 at its third plant in the country, which is operated by its subsidiary.
The company plans to use the facility for other purposes including parts storage after the suspension. There are no current plans to resume vehicle production at the plant.
For the fiscal year ending March 2026, the company revised its sales forecast downward by 40 billion yen, expecting sales of 2.82 trillion yen, up 1.1 percent from the last fiscal year. Profit forecasts remain unchanged from August, with net profit estimated at 10 billion yen.
“It has been a half year in which the outlook for the industry as a whole has been difficult to predict and competition has intensified further,” Mitsubishi President Takao Kato said at a news conference on Nov. 5.
He also said that the company expects sales to recover by introducing new models in Japan and abroad.
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