Honda is taking drastic measures to counterbalance the strength of the yen and increase its profit margin, which took a beating recently.
President and CEO Takanobu Ito announced the company would cut Japanese exports by half over the next 10 years.
At the same time, Honda will produce more 660-cc minicars (also known as kei cars) in an effort to boost sales on the Japanese market, where the automaker has been losing ground.
The measure will also allow Honda to maintain production in Japan at the 1-million unit level and avoid massive layoffs.
In the last fiscal year, a little over 25% of vehicles (or 910,000 on a total of 3.57 million units) were assembled in Japan.
Last February, Honda announced the popular CR-V would eventually be produced in North America instead of Japan.
So we can expect other such announcements in the next few years, good news for the American and Canadian auto workers’ unions.
Source: Reuters
President and CEO Takanobu Ito announced the company would cut Japanese exports by half over the next 10 years.
At the same time, Honda will produce more 660-cc minicars (also known as kei cars) in an effort to boost sales on the Japanese market, where the automaker has been losing ground.
The measure will also allow Honda to maintain production in Japan at the 1-million unit level and avoid massive layoffs.
In the last fiscal year, a little over 25% of vehicles (or 910,000 on a total of 3.57 million units) were assembled in Japan.
Last February, Honda announced the popular CR-V would eventually be produced in North America instead of Japan.
So we can expect other such announcements in the next few years, good news for the American and Canadian auto workers’ unions.
Source: Reuters