Industry round-up, May 27

Suzuki has posted its lowest annual operating profit in four years as the Covid-19 crisis causes disruptions for the automotive industry.

The carmaker’s profit came in at ¥215.1 billion (NZ$3.2b) for the year to March, down 34 per cent from a year ago and its lowest since 2016. 

The marque did not provide an earnings forecast for the current business year in its May 26 announcement, citing uncertainties because of the coronavirus pandemic.

However, Suzuki did see its shares surge after raising its year-end dividend from ¥37 to ¥48 per share  

McLaren axes 1,200 jobs

British supercar manufacturer McLaren Group, which includes the Formula One team, is cutting about a quarter of its workforce as it deals with the fallout from the Covid-19 pandemic.

The company says about 1,200 jobs will go under a proposed restructuring programme that will affect staff across its applied technology, automotive and racing businesses.

It adds the cancellation of motorsport events, the suspension of manufacturing and retail activities globally and reduced demand for technology solutions have hurt the group’s revenue-generating activities.

“It is a course of action we have worked hard to avoid, having already undertaken dramatic cost-saving measures across all areas of the business,” Paul Walsh, executive chairman, says.

“But we have no other choice but to reduce the size of our workforce.”

Mazda dishes out face shields

Mazda has started producing medical face shields at its factories and is delivering them to healthcare professionals in Japan.

About 3,000 units were due to be delivered to medical sites across the Hiroshima prefecture on May 27 after Mazda began producing the frame for the shields just days earlier. The visor element of the shields is manufactured by Ishii Hyoki Co. 

The carmaker says face shields will also be used at Mazda and Mazda affiliate facilities, especially those where enforcing appropriate social distancing is challenging.

“Mazda was preparing to manufacture and provide the medical face shields as part of an industry-government collaboration effort,” says Raita Nishiyama, Mazda’s executive adviser. 

“These face shields are intended for the trouble-free usage of all healthcare professionals working tirelessly on the medical frontline to prevent the spread of the novel coronavirus.”