Honda, Mazda poised to expand, but face high costs in build-out

Honda Motor and Mazda Motor are both likely to post near-record profits this financial year as they take advantage of export-friendly currency moves, but will face a fresh challenge: high costs of expansion.

The Japanese carmakers, due to report quarterly profit figures on Friday, are cranking up the pressure on South Korea’s Hyundai Motor Co and other foreign rivals.

Analysts expect Honda, the third biggest-selling Japanese automaker, to post January-March profits up by over a third, helped by strong sales of its Accord sedan in the United States, its biggest market.

via Business feed http://www.scmp.com/business/companies/article/1223529/honda-mazda-poised-expand-face-high-costs-build-out