What Does Honda’s Expansion Plan Mean For Americans?
Honda has consistently emphasized quality and innovation in their products as well as their overall corporate philosophy. With the rough global economic climate we’ve been experiencing lately, it’s not just consumers that are striving to stay ahead of the curve, but corporations as well. But it’s these very situations that separate the leaders from the pack. As Honda prepares for a very decisive expansion in the near future, how can Americans expect to be affected? Check in with Middletown Honda and get excited about the future of Honda automotive.
Zeroing in on the Situation
Over the past couple of years Honda has been working to decrease domestic exports and expand production in other parts of the world—particularly in America where they generate a huge chunk of their automotive sales. This is a reaction to the yen’s strong performance against the dollar, which peaked near 80 yen in 2012. Comparatively it was at around 120 yen per dollar in 2007.
Basically this means that it’s more expensive for Honda to produce their vehicles in Japan and ship abroad than it would be to both produce and sell them abroad in their strongest regions, such as the U.S. The yen’s gains combined with recent natural disasters have put increased pressure on Honda to increase profits and revenue. The best way for Honda to do that according to President and CEO Takanobu Ito is to nearly double global car sales to six million per year by 2017. So how exactly do they plan to do that?
Honda’s Plan of Action
There are several critical components to the plan. First of all they are aiming for a major sales increase in the new Fit subcompact and a small crossover SUV built on the Fit’s platform that will debut in the near future. They also want to improve their hybrid technology to take a chunk out of the Toyota Prius-dominated market share. Finally they will introduce a new family of large motorcycles, refresh the luxury Acura brand, and give regional engineering and design teams more of a say in developing new vehicles.
Bounds for Honda, Success for America’s Economy
These are all great things for American drivers and American autoworkers. Honda should not only add a huge number of jobs in automotive design, engineering, and production, but they will also produce more efficient vehicles that American drivers demand. Smaller, more efficient vehicles are better for the environment and easier on driver’s wallets. If gas prices continue to rise, which they most certainly will, Honda will be perfectly positioned to move the vehicles they need to in order to hit that six million unit figure by 2017. This is a win for everyone involved.