To deal with the increasing yen, Honda Motor Co.’s exports of Japan-built automobiles that are over a decade old will be cut in half, a publication revealed, after a discussion with its chief executive officer Takanobu Ito. The action is in accordance with the company's previously disclosed intention to sell 80-90 percent of cars made in different parts of the world in the local markets to lower the influence of currency swings.
In Asahi newspaper's interview with the CEO, Ito disclosed that in the next 10 years, Honda will minimize exports from Japan -- from 34 percent in the business year ended March 2011 to 10-20 percent.
Honda has stated it would enhance its 660cc mini-vehicle products to increase sales in the diminishing Japanese market. The company will also attempt to maintain yearly output in Japan at around 1 million units. Honda manufactured around 910,000 of its total 3.57 million units in Japan during the last business year.
In February, the automaker stated that it would manufacture more of its prominent CR-V crossovers in North America rather than in Japan to moderate the blow from the strong yen.
Vehicle manufacturers are reeling from the surge of the yen, which hit a decade-year high versus the euro and is staying at around 102 yen. The dollar is approximately 77 yen, in comparison with levels greater than 85 yen in April.