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Honda CFO Sees Economic Concerns

Honda CFO's Economic Concerns Growing

With the automotive industry still reeling from the natural disasters in Japan last March, the chief financial officer of Honda has expressed concerns that the fluctuating state of the financial markets may add even more pressure to the company's business operations.

According to Dow

With the automotive industry still reeling from the natural disasters in Japan last March, the chief financial officer of Honda has expressed concerns that the fluctuating state of the financial markets may add even more pressure to the company's business operations.

According to Dow Jones Newswires, Honda CFO Fumihiko Ike told reporters that the recent dips in the U.S. stock market coupled with the Standard & Poor's downgrade, could hurt demand in the automotive sector.

Ike explained that Honda was just planning to increase R&D spending to pre-recession levels in order to enhance technological development when the natural disasters struck, leading to supply chain disruptions.

Now, this plan reportedly remains on the back burner, with global markets in a state of flux.

"Our scenario may be have been derailed by the world's economy turning sour. This is really hard," the financial boss told reporters.

While the earthquake and tsunami caught many automakers off guard - much like the economic recession - it is important for CFOs to take steps to prepare for serious crises, from more evenly distributing suppliers to keeping tabs on political turmoil in markets around the world, according to CFO.com.
 

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