Honda Reducing Exports By Half As A Reponse To Rising Yen
The rising yen is making exports from Japan increasingly unprofitable and Honda is looking to cut vehicle exports by 50 percent over the next 10 years as a response to the change in currency valuations.
Honda hopes to sell as much as 90 percent of its vehicles in markets that can use locally sourced vehicles. Honda operates a number of regional plants in Asia, Europe and the Americas to help limit exposure to currency fluctuations.
The Japanese automaker will rely on 660cc-minicars, known as kei cars, to help strengthen their market share position in Japan, where demand for traditional cars has been steadily contracting. Currently, Japanese exports make up 34 percent of Honda’s output, but the company hopes to reduce that to between 10 and 20 percent by 2021.
[Source: Automotive News]