Honda looks to expand U.S. capacity to feed high demand
In an apparent sharp contrast to Auto News James B. Treece’s opinion that
Honda Motors is in trouble, the automaker has announced it is considering expanding its U.S. plants and even adding a
new one. In particular, demand for its award-winning new Civic is also forcing the company to consider importing models
from its Japanese and U.K. facilities until a decision is made.
Said Takeo Fukui, CEO of Honda, "In the short term we are looking at raising imports from Japan and the U.K.
to meet demand. On a medium- or long-term basis, we should look to increase production in North America and we are
making a plan for that at the moment.''
[Source: AIADA via Bloomberg via The Auto Channel]
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Reader Comments (Page 1 of 1)
Ebm14 11:48AM (3/04/2006)
The Japanese auto workers should spit in Takeo Fukui's face. The real problem with Honda is their Japanese work-force is decresing, which in turn will effect their entire economy plus his job. What will be left 20 years from now at a rate of their expansion..is just one office in Tokyo with a staff of three and plants only outside of Japan.
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Glenn Laycock 12:57PM (3/04/2006)
If they start bring Civics from Japan, I bet a lot of people would like to know how to get that instead of the locally assembled versions.
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Michael Karesh 1:11PM (3/04/2006)
If a car is designed correctly and its parts are manufactured precisely, then it should not matter where it's assembled. Anyone whose worked on a car before, especially in the interior, knows that either the parts go together easily and precisely, or they don't.
Now, if the Japanese and U.S. Civics use parts from different plants, and the plants for the U.S. parts lack the precision of those for the Japanese parts, that's a different story.
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far jr 1:31PM (3/04/2006)
I suspect that the new Civic sales will continue to be good, but it is likely they will not continue the current break-neck sales pace in perpetuity. Honda should avoid overexpanding US production which may require a cutback in production down the road at some point. Investors would likely prefer the company utilizing existing resources elswhere.
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Justin 2:37PM (3/04/2006)
Glenn, they already bring Civics from japan. All Civic Hybrids are made in Japan and exported all over the world including the US.
I would like to see them import the 4 door hatch Civic from Europe. Maybe badge it as an Acura with the SI motor. They would have no problem selling it at at $22k+
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Mick 10:12PM (3/04/2006)
Cars imported from Japan.
I was on a Toyota lot recently and noticed a dark green Camry LE. It was the color - not usual among Camrys in my area - that caught my attention, so I went and investigated it. That particular Camry was Made in Japan! You could have knocked me down with a feather. I had seen some early 2006 Honda (non-hybrid) Civics imported from Japan, but never in recent years a Camry.
Just as with the other cars on the lot, the car had someting like 80% US content; even the outside mirrors were of the cheap, fixed, immobile type that Toyota uses in the US - even on their so-called "premium" Avalon. (This says to me the car would never have been sold that way in the Japanese domestic market. Other than for the color, it was indistinguishable from the US-made Camrys on the lot. Then again, it would be, wouldn't it, with all that US content.
As for vehicles made from identical parts being equal no matter where they are assembled, I don't believe it for a minute, no more than I believe beer made from hops is the same whether it's brewed in Detroit or Dusseldorf.
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JB 12:05AM (3/05/2006)
They got my money for three vehicles over the past year - all of them made in the US (two Elements and an Accord). I've owned Hondas made in Japan (a Civic and 2 Preludes) and now here; the quality has been equal. So what does it really matter? Great design, worker input for improvements, and listening to your customers, along with amking sure your product is made right, equals success, at least in my book.
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John B 1:40PM (3/05/2006)
Justin:
I agree about the Euro version of the 4 door Civic hatch. Below is a link to Fifth Gear test of one (if that link doesn't work, search Google Video under Fifth Gear). The car is bloody amazing. The diesel tested did 0-100 kph. in 8.6 seconds, 127 mph top speed and got 55 mpg highway. The nav system also told the tester where the nearest pub was.
http://video.google.com/videoplay?docid=280723957717355448&q=fifth+gear
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Aki 8:31PM (3/05/2006)
As I voiced in the other article, James Treece is an idiot. And I agree with other posters--they should hold off on increasing production, as Civics sales are likely a temporary surge due to the hyped up launch.
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