Filed under: Economy, Etc., Plants/Manufacturing, Hatchbacks, Honda
Could China-built cars "Fit" American Honda's supply needs?
In the same Ward's Auto World article that saw American Honda's John Mendel nix the idea of a Honda full-size pickup, he also took some time to discuss the hot-selling Fit subcompact. Released in the US at the perfect time, the Fit and its gaudy fuel economy numbers have won over customers to the tune of 15,922 since its Spring launch, according to Ward's. Unfortunately, the demand for the hatchback is so high that Honda is looking at supply problems that are throttling back total sales.
Today, the US-spec Fits are all imported from Japan. Mendel suggested that if Honda were to try to increase US supply, a very real possibility would be the importation of Chinese-built Fits to the States. China already exports the car to Brazil, India, Russia, and Australia, and has even begun shipping some cars to Europe as well. According to Mendel, there would be no quality drop-off if China-built Fits made their way here, and he feels that customers would be indifferent towards the car's point of origin, especially when you consider the number of products we buy that are made in China anyway.
Our feeling is that if the cars are built to the same standard as the Japan-built models, where the they come from won't matter. Would some people shy away from the Fit if they knew they would be getting a Chinese model? Probably, but the majority of customers would never see past the "H" badge and happily plunk down a deposit on one.
Technically, this is all hypothetical, since Mendel told Ward's that no such plan is in the works at this time. The fact that he discussed it at all, however, indicates that the idea has been (and probably still is) discussed at length internally. If Honda -- or any other automaker, for that matter -- were to look to China to supply the US market, would that influence your purchasing decision? We'd like to hear your feedback.
[Source: Ward's Auto World]
Reader Comments (Page 2 of 2)
AAM 10:03PM (8/15/2006)
I've already started cutting back at greatWall-Mart for the same reasons:
Why support building THEIR infrastruture while ours is crumbling?
Do they support N. Korea aimming Nukes at the US?
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Andy Alviar 10:13PM (8/15/2006)
If only gas is just $1.20 a gal., I would not consider getting a " FIT ".I don't care where they are made. As long as they run like a car, it's fine with me.The same as medicines that a lot af people buy from Canada and Great Britain. It's cheaper...........
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?? 10:20PM (8/15/2006)
This is a very much popular artikle, so many reply.
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TPR 10:42PM (8/15/2006)
Yes, the human rights violations of Communist China will keep me from purchasing a big ticket item of any kind made in the "People's Republic." No big screen, no car, no nothing. No matter the brand attached. I try to stay away from all the consumables I can that are made there, although it's impossible to avoid it all.
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Anthony94114 11:12PM (8/15/2006)
Ok, so is everybody ready to finally retire the concept that Americans WILL NEVER EMBRACE THE HATCHBACK? I think it's officially an old, untrue marketing fear.
Bring on the hot hatches, the diesel 80mpg VWs (not that I'd buy a junky VW, but for the mpg, maybe), and yes, the FIT from China. Where it's from doesn't really matter.
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General Electric 11:38PM (8/15/2006)
"So, it's becoming very much like the Electronics Industry...a Sony is a Sony, regardless of whether their product is build in Japan or China or Malaysia"
Sony has bombed in quality since 1995. They're focusing on only their media division.
I sure do agree with the NUMMI turnaround.
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Temple 12:33AM (8/16/2006)
Bad PR move for Honda if they do import Chinese built Fits to the US.
While, the quality should be on par with Japanese built Fits, it won't do Honda any good to be known to be the first to sell Chinese cars in the US, I certainly shouldn't be seen as a gateway company for Chinese vehicles to the US.
Selling more Fits (low profit margin anyway) cetainly don't justify the bad PR. Honda should first wait until other companies like GM, Hyundai that have large production capacity in China to do it first.
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A K 12:54AM (8/16/2006)
The 'Fit' is not sold in India , so no question of importing it from China arises. The 'Honda City', a sedan version of 'Fit' is sold in india and as far as I know it does not have Chinese built components.
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Pinklin 1:18AM (8/16/2006)
Lithous, let me introduce you to
招商.
Go to his website and get to know him. I'm sure 招商 is a very nice and smart individual.
This is the future, there Lithous. Get used to it.
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Cheezedog420 2:40AM (8/16/2006)
As a American, I feel its my civic duty to set a few facts straight on how a typical American may feel, but does not cover the whole of Americana as a whole since we can be a vary diverse nation in our oppinons.
I personaly don't mind Honda that much. They make good cars, and thats fine by me. And I also happen to like hatchbacks... Infact, I Expecally the mid 90s Honda Civic hatchbacks. I always thought they where great cars, with lots of fun potential. As for the Honda Fit itself, I don't like it per say because it reminds of a Mini-van, but I also saw its nessesity.
That said, in these times of turbulant energy prices, I consider a Honda Fit a top purchase if I was in the market for a new car. As it is a Honda, and will be easy on the gas...
But... As a American, I do have a problem supporting a goverment like China that blatently denies property rights to its people, and stifles freedom of speech regularly amoung its people. Here is a nice little exsample of how much China protects the property rights of its people.
http://www.msnbc.msn.com/id/14139027/
I have these things called a right to free speech, and a right to own property, and I enjoy having these rights a hell of a lot more then having a new car. So I would not buy a car, shoe, or comb from China if I can help it. (And No I don't buy anything from Walmart for just that reason!)
In any case, if Honda made good on manuver to move production of the Honda Fit to China, I would not buy a Honda Fit. It would stand against what America was founded on. The Boston Tea party taught us, 'You don't buy something if you don't believe is right to buy it.' (Actually it taught us to distroy something you don't believe is right to buy, but I think thats open to interpertation...)
In any case, if the Honda Fit was to start being produced in China, I would still continue to consider buying other fine quality Honda products. Im not Zenophobic, but oppinonated in that all people should have rights, and will do my best not to support a goverment that denie's rights I hold to my fellow man. As such, I would hope Honda is able to see my problem with China's refusal to give its people basic rights, and maintain production in Japan before giving what I think is a evil empire anouther chance to cement itself into my way of life.
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Aki 2:47AM (8/16/2006)
There are both examples of outsourced manufactering not impacting reliability (Honda/Toyota in US) and examples of it really screwing up quality (Sony in Malaysia/China).
Basically I wouldn't touch a China-made car unless some other brave consumers decide to take the plunge, and after long term reliability data is available. Not going to plunge $13,000 on a blind hope that they're the same as the Japanese-made cars.
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J 4:11AM (8/16/2006)
Actually, Thailand makes the Fit/Jazz for Australia. I believe it is the same for the Accord Euro/TSX(?)
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Richard Warren 9:18AM (8/16/2006)
But I thought a lot you folks said a car could be built anywhere by low priced non-union unskilled help, someone even mentioned a monkey could do a better job and have build quality.
Everywhere by anyone except the Chinese that is. Rigggggght
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Jellodyne 10:53AM (8/16/2006)
Does the Chinese made Fit come with a leather option?
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Adrian 1:42PM (8/16/2006)
The RSX and TSX sold in the US are built completely in Japan ... The RDX, MDX and TL are all built in the US. (the US car's have varying degrees of Japanese parts in them.)
I know this because I just spent a few hours in a Acura dealer in Santa Monica waiting for my friend's paperwork to finish when he was buying a TSX.
-- As for cars made in China -- I don't think I would buy a Chinese designed car -- at least not right now -- but I think if Honda or any other brand were making cars in China for the US market -- they would make sure the cars were up to the standards we expect in this country.
I have a feeling when Toyota or Honda sells a car in China made for the Chinese market they cut corners to keep costs low which probably brings down quality. Look what they are competing against in that market.
In the US, VW's are not known to be reliable cars anymore -- while they still are seen that way in Europe. I can only think that is because our cars come from Mexico... My friend's 2002 Jetta isn't very reliable.... and yes, made in mexico.
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Sunny 10:54PM (8/17/2006)
When I think of HONDA I think of JAPAN. I would reconsider if I knew the car I was going to buy came from China.
My reason is... I take pride in Japan and Honda and China would just mess it all up.
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jjaxon 11:33AM (8/18/2006)
i dont know much about honda .. never owned one but i was driving west on interstate 44 in Tulsa, Ok the other day .. i was in the left lane and a honda was approx. 90- 100 feet in front of me in the right lane.. his left front tire blew out and i was amazed that it also blew off his left front fender.. into my lane... which i managed to avoid... it was a late model looking h onda.. probably early 2000's
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James 8:07PM (8/20/2006)
Hmmm... I really like the Fit, and I personally wouldn't care so much about its origin were I in the market for one, but I've always preferred Toyota anyway and would rather have the peace of mind of owning a Yaris instead (3-door, 5-speed, blazing blue metallic, power package, please) knowing it came straight from Japan.
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William 7:25PM (3/27/2008)
Hey if Honda can build a quality car in the USA plants, then I wouldn't doubt a car made in China.
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Gary 4:02PM (1/01/2009)
Here goes: I live in Beijing near the Drum Tower (HoaHai Park) I am a American. A honda in China costs $400,000.00 yuan about $58,000.00 USD a chinese built car costs $30,000.00 yuan about $4,300.00 USD with the same quality.
As for a skilled worker??? Where does this skill come from? With all the new automated machinery and etc cars are basically built the same the world over. My daughters Mustang I found out one day was built in Mexico, but it was still a Mustang.
With respect to quality? If the brand name manufacturers quality assurance engineers are doing their job then the car should be no different than those built elsewhere in the world.
Just think about Matel toys and their quality engineers who did not do their job and we ended up with toys with toxic paint. They wanted cheap and China obliged them, but the falt should have been Matels quality engineerings falt. Look at the congressional records on that matter after their hearings with Matels CEO's.
China has a minimum wage law. You fail to realize the money difference. If they are paid 10.00 yuan per hour this is only $1.43 USD per hour. Then you adjust this to the cost of living in China with free health care and if a itenerate worker, housing must be provided. We keep saying they only make $475.00 USD per month, but that is $3125.00 yuan per month in their money.
You can check it, but GM did 1.1 billionin China in sales last year. The new trendy young chinese use a Buick,Chevrolet, Caddilac or SUV as a status symbol and there are 1000 new cars on their highways each day.
Can you imagine one of those slave labor people driving a BMW and looking to buy a Caddilac Escalade for weekend trips with the family. They like the styling but otthe fuel economy.
Wake up America and be part of the real world, I DID AND DRIVE A SKODA 65+ MPG
I think we should get to know and understand China before condeming it.