Honda Motor Co. will halve exports of vehicles made in Japan over the next 10 years to tackle the rising yen. Hit the jump to read the rest of the story.
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The move would be in line with Honda’s stated plan to sell 80 percent to 90 percent of vehicles produced in various regions around the world in local markets to reduce the impact of currency swings.
Honda CEO Takanobu Ito told the Asahi newspaper that the company would reduce exports from Japan to 10 percent to 20 percent from 34 percent in the business year that ended in March 2011 over the next decade.
Honda has said it would beef up its 660cc minivehicle offerings to boost sales in the shrinking Japanese market and try to keep annual output in Japan at about 1 million vehicles.
Honda built about 910,000 of 3.57 million vehicles in Japan during the latest fiscal year.
Honda said in February it would build more of its popular CR-V crossovers in North America instead of in Japan to cushion the blow from the strong yen.
Automakers are reeling from the rise of the yen, which 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.
