Japanese car makers have endured a tough quarter due to the rising cost of materials, a weak dollar and a tough US market.

They can expect the conditions to continue for the remainder of the year after falls in April to June profits.

Both Toyota and Honda have suffered from the decline in sales after a collapse in the demand for vehicles in the US affected both firms.

Toyota is expected to post a 36 per cent drop in first-quarter profits, according to broker estimates.

This would be a dramatic drop on a strong quarter in 2007 and profits at Nissan, Mazda and Suzuki are all likely to take a hit.

Meanwhile, a weakening in China's auto sales could be a sign of difficult times ahead.

According to reports from the Wall Street Journal, the news is likely to affect General Motors and Volkswagen which have all increased production to China.



Source:

Japan carmakers' Q1 to plunge on yen, weak US sales, 23/07/08
http://www.reuters.com/article/rbssConsumerGoodsAndRetailNews/idUST34000820080723?sp=true

China's Booming Auto Industry Approaches Growth Speed Bump, 24/07/08
http://online.wsj.com/article/SB121684155993178127.html?mod=googlenews_wsj