Mazda Motor Corp. and Mitsubishi Motors Corp. forecast losses for this business year as the global recession dampens demand for cars.

Mazda expects a loss of ¥13 billion for the year ending in March and MMC predicted a loss of ¥60 billion, the carmakers said in separate statements Wednesday. They had previously forecast profits.

Both plan to cut capital expenditure and jobs as they try to limit the damage from the worst U.S. car market in 27 years. The yen's 23 percent rise against the dollar and 29 percent jump against the euro last year are also eroding the value of overseas earnings.