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Posts Tagged ‘honda exchange rates’

Honda Doubles Earnings

Maker gets big boost from weakened yen.

by on Jan.31, 2014

Strong demand for products like the Honda Civic Coupe combined with a weak yen to double quarterly earnings.

Honda more than doubled its quarterly earnings, much of that gain driven by the weak yen, while also picking up momentum in key markets including North America.

The maker reports it earned 160.7 billion yen, or $1.58 billion for the October-December period – its fiscal third quarter – compared with a 77.4 billion net profit during the same period a year ago.

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Honda has been steadily expanding its global manufacturing operations – it now produces about nine of every ten vehicles sold in North America in the region – but favorable exchange rates nonetheless helped the third-largest Japanese maker deliver such a strong quarter, the weak yen credited with adding $4.2 billion, or 425 billion yen, to its revenues for the quarter.


Honda Cuts Shipments of Cars from Japan to U.S.

Maker losing money on models like Fit, CR-Z, Insight.

by on Jun.12, 2012

Honda plans to export the Fit subcompact from China to Canada -- at least temporarily.

Honda is cutting exports of the Japanese-made Fit to U.S. dealers because of lopsided exchange rates.

Crushed by lopsided dollar/yen exchange rates, Honda is cutting back on exports from Japan to the U.S., even though that will curb potential sales and market share growth, the maker’s CEO says.

The maker hopes to offset those reductions by ramping up production in the U.S. and other parts of North America.  Honda recently broke ground in Mexico for a new plant that will supply American dealers with the subcompact Fit and possibly other products.

“Under the current exchange rate of 80 yen per dollar, our export business doesn’t make any profit,” Honda Motor Co. CEO Fumihiko Ike told the trade publication Automotive News. “Definitely, the absolute number of exports to the United States will be decreasing.”

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Honda is by no means the only Japanese maker to curb exports to the U.S. as a result of the weak dollar.  And European makers, including BMW and Audi, have also curtailed exports due to lopsided exchange rates – though with the Euro sliding the gap has narrowed in recent weeks for German and other Continental manufacturers.


Honda Adding New Small Car Plant in Mexico

Maker’s eighth North American assembly line.

by on Aug.15, 2011

The Honda Fit is likely to be among the first products to roll out of the maker's new Mexican plant. An EV version of the subcompact will launch in 2012.

Plagued by the threat of earthquakes, tsunamis — and lopsided exchange rates, Japanese automakers are shifting more and more manufacturing off the home islands – Honda announcing it will build its eighth North American assembly plant in Mexico.

Set to begin production in 2014, the $800 million factory will produce subcompacts – such as the Honda Fit and CR-Z — for sale in the U.S., Canadian and Mexican markets, the automaker says.  Assembling those low-priced models has become increasingly difficult in Japan, especially with the yen rising to its highest level ever, all but ensuring imports would be money-losers in the North American market.

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The factory will employ 3,200 and have an annual capacity of 200,000.  That will bring the to 1.83 million the total number of Honda and Acura cars and light trucks the carmaker will be able to produce in North America – which it estimates will be about 87% of its volume once the new assembly plant opens.`