Industry Report: Honda Chairman Vows to Keep Production High and Use More U.S. Parts and Labour

Why Are Japanese Automakers So Concerned about North America's Big 3?

What's with Japanese benevolence in the U.S. auto industry lately? First it was Toyota Motor Corp.'s Chairman Hiroshi

What's with Japanese benevolence in the U.S. auto industry lately? (Photo: Alexandra Straub, Canadian Auto Press)

Okuda who offered to help save the ailing Big 3 by increasing the prices of U.S.-bound Toyota vehicles and sharing some technological research, both of which, if licensing fees were involved, would only make the Japanese giant wealthier in the process, and now Honda Motor Co. CEO Takeo Fukui wants to keep production levels high and purchase more U.S. parts to "help support the U.S. economy and its floundering auto industry," or so says an Associated Press report.

Fukui commented that such measures would be preferable to raising prices. This scenario would at the very least be more preferable to Honda. While the plan appears generous at first glance, it would involve increasing production, which basically means selling more Accords and Civics, among other Honda and Acura models, and in so doing reduce the number of Big 3 sales. While jobs would go to

If Honda manages to find ways to increase U.S.-made componentry, the effects on the industry will be nominal, but the goodwill that could be achieved by trying to do so might be priceless. (Photo: Alexandra Straub, Canadian Auto Press)

North American workers, profits would still be siphoned off to Japan.

Of course, being that Honda currently produces approximately 80 percent of its North American-destined cars' components in the U.S., it would difficult for this percentage to increase substantially. If Honda manages to find ways to increase U.S.-made componentry, the effects on the industry will be nominal, but the goodwill that could be achieved by trying to do so might be priceless.

Priceless? Absolutely. While Okuda's idea was quickly dismissed by Toyota's North American executives, the question as to why he said it in the first place, and why Honda's Fukui is offering to increase U.S. parts and labour, remains.