Welcome to the North American Subaru Impreza Owners Club Friday March 29, 2024
Home Forums Images WikiNASIOC Products Store Modifications Upgrade Garage
NASIOC
Go Back   NASIOC > NASIOC General > News & Rumors > Non-Subaru News & Rumors

Welcome to NASIOC - The world's largest online community for Subaru enthusiasts!
Welcome to the NASIOC.com Subaru forum.

You are currently viewing our forum as a guest, which gives you limited access to view most discussions and access our other features. By joining our community, free of charge, you will have access to post topics, communicate privately with other members (PM), respond to polls, upload content and access many other special features. Registration is free, fast and simple, so please join our community today!

If you have any problems with the registration process or your account login, please contact us.







* As an Amazon Associate I earn from qualifying purchases. 
* Registered users of the site do not see these ads. 
Reply
 
Thread Tools Display Modes
Old 08-11-2011, 02:22 PM   #1
AVANTI R5
Scooby Guru
 
Member#: 73805
Join Date: Nov 2004
Vehicle:
24 TypeS ZO6
White

Default Honda says studying shift overseas to avoid yen effect

Quote:
Honda Motor Co is studying possible production bases overseas to replace export-bound car production in Japan that has been battered by a strong yen, a top executive said on Tuesday. Japanese auto executives have repeatedly warned that the yen had strengthened beyond what domestic exporters could cope with, but Honda Chief Financial Officer Fumihiko Ike's comment was the first indication so far that any concrete steps are being considered to reduce output in Japan.

"We currently have a three-year plan under which we are assuming a rate of 80 yen to the dollar," Ike told a small group of reporters at Honda's headquarters in Tokyo.
Index Last Change HMC
33.84 +0.43
+1.30% Quotes delayed 15+ min.
"And under that assumption, the discussion to look for an alternative production base is inevitable."

Ike tempered his comments by stressing that jobs in Japan needed to be protected, and that the discussion would continue right up to the point when the board makes a formal decision, taking into account exchange rates at that time.

But he said he was not necessarily optimistic that the yen would weaken, and that Honda was bracing itself for further appreciation toward 70 yen to the dollar after Japan's solo intervention last week did little to stem the dollar's fall. The U.S. currency was fetching around 77.00 yen on Tuesday.
"Protecting Japanese manufacturing and building cars here is becoming more and more difficult," Ike said. "We can keep the technology here, but if we were to build cars in Japan, they may be good (quality) products but they would be too expensive. And an expensive product is not necessarily a good product."

Among Japan's top automakers, third-ranked Honda is the least exposed to excessive domestic production, exporting just 30 percent of its Japan-made cars last year. Toyota Motor Corp exported 53 percent, while Nissan Motor Co shipped 59 percent.

All three automakers have a basic strategy of creating a natural hedge against currency swings by producing as many cars as they can where they are sold. But for smaller markets where demand is insufficient to build a factory, production has been concentrated in Japan.

"At these exchange rates we lose competitiveness on these exports, and that leads to a fall in sales, triggering a vicious cycle," Ike said. "And when that happens, the natural consequence is for that production (in Japan) to disappear."

Ike said Honda had already gone down that path with motorcycles, expanding production in India, Vietnam and Indonesia. Honda imports many motorcycles into Japan from Thailand and China.

If Honda takes a similar step with cars, it could put pressure on rivals Toyota and Nissan to do the same and lead to a hollowing out of Japanese manufacturing, one of the main drivers of the country's economy.
Toyota and Nissan have been more vocal than Honda about protecting domestic production, with Toyota pledging 3 million vehicles a year of output in Japan and Nissan pledging 1 million.

Nissan said this week it plans to boost its sales in the shrinking Japanese market to keep the 1 million annual production target as it shifts more export-bound output overseas.

"Car makers are trying hard to cut costs to absorb the currency impact, but there's a limit to the speed and scope of what they can achieve," said Credit Suisse auto analyst Issei Takahashi.

"Even if they build a lot in Japan, if they lose money by doing so they won't be able to protect jobs. I think it's inevitable that some production shifts overseas."
http://www.msnbc.msn.com/id/44071217.../#.TkQdRoKwUUU
* Registered users of the site do not see these ads.
AVANTI R5 is offline   Reply With Quote
Sponsored Links
* Registered users of the site do not see these ads.
Old 08-11-2011, 02:34 PM   #2
HipToBeSquare
Scooby Specialist
 
Member#: 119958
Join Date: Jul 2006
Location: (IA) flyover cornfield country
Vehicle:
1992 SVX LS-L

Default

Is it the Yen being stronger, or the dollar being weak as hell, and going down?

I am not sure what Japan is doing to strengthen their currency, but the US is certainly trying to devalue ours, and we are a big importer with our customer base also under economic pressure. American buyers can still buy a few things, but not with enough economic leeway to afford big price increases.
HipToBeSquare is offline   Reply With Quote
Old 08-11-2011, 05:17 PM   #3
arghx7
Scooby Specialist
 
Member#: 232940
Join Date: Dec 2009
Location: cold
Default

The yen is perceived as a safe haven currency by many. Banks and traders are still buying it up, even though the Bank of Japan has gone through many rounds of quantitative easing style money printing and loose monetary policy.
arghx7 is offline   Reply With Quote
Old 08-11-2011, 10:26 PM   #4
HipToBeSquare
Scooby Specialist
 
Member#: 119958
Join Date: Jul 2006
Location: (IA) flyover cornfield country
Vehicle:
1992 SVX LS-L

Default

Evidently they are just slightly behind the US FED's curve, and the Yen is still stronger than the Dollar, just like the US is slightly behind the defaults of Greece, Portugal, Ireland, and soon to be Spain and Italy.

All going down the same road, to the same bankrupt destination, just at different mile markers at any given time, I guess.
HipToBeSquare is offline   Reply With Quote
Old 08-12-2011, 01:03 AM   #5
Eyeflyistheeye
Scooby Specialist
 
Member#: 69694
Join Date: Sep 2004
Chapter/Region: SCIC
Location: My personal hell
Vehicle:
2014 EuroPinto 5MT

Default

Just build more Crosstours. That should fix things.
Eyeflyistheeye is offline   Reply With Quote
Old 08-12-2011, 01:41 AM   #6
Len
Scooby Specialist
 
Member#: 39937
Join Date: Jul 2003
Location: SF Bay Area
Vehicle:
2011 328i 6MT
LMB

Default

Quote:
Originally Posted by HipToBeSquare View Post
Evidently they are just slightly behind the US FED's curve, and the Yen is still stronger than the Dollar, just like the US is slightly behind the defaults of Greece, Portugal, Ireland, and soon to be Spain and Italy.

All going down the same road, to the same bankrupt destination, just at different mile markers at any given time, I guess.
You know what you should do? Use your definitive knowledge of the future and start shorting these countries. Loan some money and go all in. You will make tone of money at the expense of these evil governments!
Len is offline   Reply With Quote
Old 08-12-2011, 11:47 AM   #7
HipToBeSquare
Scooby Specialist
 
Member#: 119958
Join Date: Jul 2006
Location: (IA) flyover cornfield country
Vehicle:
1992 SVX LS-L

Default

With what money? I am subjected to the trends I discuss. My dollars, as well as yours, and everyone else's, are being de-valued. My job is just as vulnerable as anyone's, and my pay hasn't gone up, just as most people's hasn't. Most people, even if they do get a 3% raise, are still losing money, because the actual inflation rate has been around 10% since 2008.

Anyone, like the US Government who tells you otherwise is lying to sell something. The government's stats in recent decades has ignored food and energy, which are the two biggest inelastic demand items in a household budget.

And that isn't a moral action, to actively seek demise.

I already prepare, in the slight ways that I can, for the demise I see others seeking for the US, and other countries.

Know history, or you will be doomed to repeat it. I know what is likely to happen, because I know it has all happened before.
HipToBeSquare is offline   Reply With Quote
Reply

Thread Tools
Display Modes

Posting Rules
You may not post new threads
You may not post replies
You may not post attachments
You may not edit your posts

BB code is On
Smilies are On
[IMG] code is On
HTML code is Off
Forum Jump

Similar Threads
Thread Thread Starter Forum Replies Last Post
GM plans to shift overseas production AVANTI R5 Non-Subaru News & Rumors 7 05-13-2009 01:00 AM
Honda Open Study Model Concept to be revealed in London AVANTI R5 Non-Subaru News & Rumors 9 07-22-2008 06:33 PM
Thump in rear when shifting - how to avoid? newsman Transmission (AT/MT) & Driveline 4 07-17-2003 12:47 PM
Reason To Avoid Honda dil9u Off-Topic 20 01-09-2003 01:10 PM

All times are GMT -4. The time now is 02:58 AM.


Powered by vBulletin® Version 3.7.0
Copyright ©2000 - 2024, Jelsoft Enterprises Ltd.
Powered by Searchlight © 2024 Axivo Inc.
Copyright ©1999 - 2019, North American Subaru Impreza Owners Club, Inc.

As an Amazon Associate I earn from qualifying purchases.

When you click on links to various merchants on this site and make a purchase, this can result in this site earning a commission
Affiliate programs and affiliations include, but are not limited to, the eBay Partner Network.