Three of Japan's automakers, Honda, Mitsubishi and Mazda are selling more cars, but making less profit doing so.
Honda Motor Co's profits dropped a whopping 86% in the first quarter of this year compared to last year.
One reason - a corporate tax levied on its Chinese joint venture of $244 million.
Honda is Japan's number two.
Mistsubishi Motors Corp saw profits drop 37% even though the company's sales were up 12%.
One reason - Mitsubishi closed a 28-year old factory in Australia.
Mazda Motor's profits were up 48% for the first quarter of this year and the last quarter of Japan's fiscal year. Sales were up just 1.2%.
One reason - a strong demand for the Mazda 6 in Europe.
Toyota and Nissan will put out their numbers later this month.
Meanwhile, oil prices go up and Japanese car companies are happy they are the choice of many.
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