Toyota says its July-September profit dropped 18.5% to 80.4 billion yen (€748m) as it made and sold fewer cars because of parts shortages caused by the March tsunami disaster in north-eastern Japan.

Honda said today that its quarterly earnings tumbled 56% compared with the same period last year, battered by the strong yen and production disruptions from the March tsunami disaster.

A senior member of Japan’s ruling party says the prime minister could resign before August.