To combat the ongoing battle between the fluctuating yen and its affect on car profits, Honda plans to gradually decrease the amount of products it exports from Japan.
According to a report by Reuters, Honda will cut exports from Japan by half within the next 10 years. Honda’s goal is that 80-90 percent of vehicles sold in a given market will have been made within the same region. For Honda buyers here in the States, that means your next purchase will likely be a car that was manufactured by one of the automaker’s U.S. assembly plants. The Odyssey, Pilot, and Ridgeline are currently built in Alabama, while the Accord is produced in Ohio. Honda states that by February 2012 it will increase CR-V production in North America.
Last year, Honda produced at total of 3.57 million vehicles globally, with 910,000 of them built in Japan. Exporting those Japanese made cars has increasingly become a money-losing proposition. Reuters reports that the yen hit a “10-year high against the euro on Tuesday and is hovering around 102 yen . The dollar is around 77 yen, compared with levels above 85 yen in April.”