Honda chief wants regional hubs to export 20-30% of output

Article by Anita Panait, on November 20, 2013

Honda Motor Co. President Takanobu Ito is aiming to have North America and other regional hubs export 20 to 30 percent of their output to other markets. This export target comes up as Honda’s top honcho expects record sales in the US in 2013 and in 2014. Honda’s sites in the US, Canada and Mexico set aside 5 percent of their production for export. 

Honda wants a great part of the export increase to come from its Ohio and Alabama sites, where it is producing large vehicles suited to export markets, Ito told Automotive News.

He said that if a regional hub has a 100-percent production capacity, then 70 percent to 80 percent should be sold in the local market and the rest should be exported to other regions. This means that Honda’s operations in North America would ramp up shipments of large cars like the Accord sedan and Pilot crossover to overseas markets like the Middle East.

The target to boost exports from hubs like the US is part of a new realignment of Honda's production base, which has set a goal to build a bigger localized footprint that is less dependent on Japan and has the capability to react much faster to fluctuations in exchange rates and global demand. The plan also will be implemented at Honda's regional production bases in Southeast Asia, Latin America and Europe.

The US is expected to spearhead the diversification drive as it is Honda’s most developed manufacturing network outside of Japan. Ito told Automotive News that his biggest challenge “is trying to grow Honda globally in a well-balanced manner." He remarked that so far, Honda has not been able to deliver cars in “a timely manner that truly meet the differing needs of customers in the various regions." [source: automotive news - sub. required]

Topics: honda, export

If you liked the article, share on:


Login or Create new account to add a comment!


It wasn’t too long ago when Maserati took the wraps off what appears to be the most gorgeous concept coupe ever made. The Alfieri coupe premiered at the 2014 Geneva...
by - October 23, 2016
Many have been excited with the impending arrival of the next-generation Jeep Wrangler and the new 2019 Jeep Grand Wagoneer, which is slated to be the brand’s new range-topping model....
by - October 21, 2016
Chevrolet has taken the wraps off its new Chevrolet Colorado ZH2 at the fall meeting of the Association of the United States Army (AUSA). Tagged as the most extreme fuel-cell-powered...
by - October 21, 2016
Honda has unveiled the fifth generation of its hot-selling SUV – the 2017 Honda CR-V. The latest iteration of the CR-V should help it maintain its benchmark status in the...
by - October 21, 2016
Many are already expecting BMW to launch an ultra luxurious SUV that will serve at its new flagship by late 2018. Larger than the X5 and X6, the new X7...
by - October 21, 2016