Tokyo-the Honda Engine What is studying possible overseas production base to replace the export-bound production car in Japan, which had been battered by a strong yen, a top manager said Tuesday.
The leadership of the Japanese car repeatedly warn only strengthened beyond what could face domestic exporters, Honda Chief Financial Officer Fumihiko Ike's comment was the first indication so far that no concrete steps are being considered to reduce production in Japan.
"Currently we have a three-year plan, under which we assumed equal to 80 Yen to the dollar," said Ike a small group of reporters at the headquarters of Honda in Tokyo.
"And this provided the discussion look for alternative production base is inevitable."
IKE moderate stressed that jobs in Japan, the need to protect your comments, and that the discussion has continued right up to the moment when the Council of a formal decision, taking into account exchange rates at the time.
But he said he was not necessarily optimistic, that would weaken the yen, and that Honda had hurt itself to further appreciation towards 70 yen per dollar after the Japanese solo hit last week, the dollar's fall cause little. The u.s. currency was around 77.00 yen on Tuesday.
"The protection of Japanese manufacturing and building a car that is becoming increasingly more difficult," he said. "We can keep the technology, but if we are to build cars in Japan, the products can be good (quality), but it would be too costly. And expensive product is not necessarily a good product. "
Among the best automakers is the order of a third Honda at least exposed to excessive domestic production, export, only 30 percent of its cars, Japan last year. Toyota Motor Corp., exported, 53 percent, while Nissan Motor supplied by 59 percent.
All three big automakers have a basic strategy to create a natural hedge against currency fluctuations by so many cars, may, where they are sold. But for the smaller markets, where demand is sufficient for the construction of the factory, the production of concentrated in Japan.
"On the exchange rates we have lost competitiveness in these exports, and this leads to a decrease in sales, which led to a vicious circle," he said. "And when this occurs, it is for this production (in Japan) will disappear."
IKE claimed that Honda had his way with motorcycles, expansion of production in India, Vietnam and Indonesia. Honda motorcycles, many of the imports from Thailand to Japan and China.
If Honda similar pace with cars, it would put pressure on rivals Toyota and Nissan and lead to a purge of Japanese manufacturing, one of the main causes of the country's economy.
Toyota and Nissan was louder than the Honda on the protection of domestic production, while Toyota had promised three million vehicles a year production in Japan and Nissan, as 1 million.
Nissan this week said it plans to increase its sales in the Japanese market to maintain the annual production target of 1 million moves more export-bound output overseas.
"We are trying to reduce the cost of Bertrand of the currency, but there are limitations on the speed and scope of what can be achieved," said an analyst at Credit Suisse car Issei Takahashi.
"Even if they make a lot in Japan, if you lose money, it will not be able to protect jobs."I think it is inevitable, is shifting some production overseas. "
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