Toyota, Honda, and Mazda all intend to keep stoking their heavy spending on costly next-generation technologies, even as the COVID-19 pandemic inflicts financial pain on them.
Toyota saw net income tumble 86% in 1Q20, but President Akio Toyoda (photo) said it would be shortsighted to try for short-term savings by cutting back on funding advanced research. “I sense that there seems to be much talk about a V-shaped turnaround,” Toyoda said at his company’s earnings announcement, held virtually over Zoom. “By deciding to stop various things, an individual company can turn its results around. “It bothers me that such action often seems to be praised,” he said. “That’s not right. This is how I feel.”
Honda’s results included a net loss, but reserves are holding up and the company are keeping their focus on the long-run game of autonomous, electrified, and connected vehicles “To survive, we will continue to invest in the next-generation technologies at all cost,” Honda CEO Takahiro Hachigo said last week while announcing his company’s loss. “We have no intention of scaling it down”.
Mazda—despite a net loss of USD $188m in 1Q20 and a 20% slump in global sales—still plan to carry on funding innovation. Senior Managing Executive Officer Akira Koga says the company “will not relent in our investment in development and facility for our future growth, we will continue and step it up.”