Under subsidiary operating plans, SOA projects retail sales increases on the strength of the strong-selling Impreza. However, with dealer inventory adjustments to be implemented with the focus on the B9 Tribeca, a decline of $271 million in sales is predicted from the previous year. For operating losses, negative factors include the $26 million deterioration in sales volume and mix stemming primarily from the B9 Tribeca inventory adjustments, and the $51 growth in incentives to sell out the 06MY. Operating loss will improve by $7 million to operating loss of $13 million.
For SIA, while B9 Tribeca exports will commence, a 28.3 billion yen decline in net sales is scheduled due to production cuts accompanying Legacy and B9 Tribeca inventory adjustments in North America. For operating income, projections are for a decrease in units (causing a decline of $23 million), the impact of raw materials price hikes (a decline of $34 million), and increased depreciation costs (a decline of $6 million). However, with the effects of comprehensive cost cutting activities to generate an increase of $65 million, other spending decreases adding another $3 million in improvements, the plan is for an operating profit of $2 million, up $24 million from the results of the previous year.