Honda could move headquarters outside of Japan
Corporate posturing or not, Honda's Takeo Fukui made his opinions perfectly clear regarding the Japanese government's recent lack of currency manipulation. Fukui, CEO of Honda Motor Co., suggested that the yen's rise in value relative to the currency in the United States and Europe is causing major damage to the automaker, and he's willing to take drastic measures to stop the hurt, including relocating the automaker's corporate headquarters to another country. Other possible actions include a major reduction in workforce, including the type of permanent lay-offs that the automaker has typically avoided in the past, as well as moving more production out of Japan and into overseas markets.
Fukui might get exactly what he wishes for, as many economists are predicting that the yen will sink in value in relation to the dollar within the next few days. If not, many, like Fukui, are calling on the Japanese government to step in and devalue its currency for the first time in four years. Thanks for the tip, BenS!
[Source: Japan Probe]
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Reader Comments (Page 1 of 3)
Carlos 7:25PM (12/22/2008)
I doubt there's much of a chance of it actually happening... but if anyone did it, it would be Honda. They've never been that big in Japan, nor do they have a particularly close relationship with the government. According to legend, the Japanese government only planned to let Toyota and Nissan enter the US market back in the day because they were Japan's Big 2 and would give a good showing. Honda, despite being pretty new to cars, went anyway and the rest is history. Probably helps that they were still being led by Soichiro Honda himself. Cool guy from the sounds of it.
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Sea Urchin 7:50PM (12/22/2008)
Come to USA, open headquarters in NYC.
Here in USA we have everything, hard working labor (mostly in the South) good engineers, great design folks and great financial people.
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Max 8:59PM (12/22/2008)
You kiddin' right?
John` 6:07AM (12/23/2008)
no he's not, the problem is a lot of the people with utterly insane potential are stuck working petty jobs while all the idiots get to run the show.
IK 7:36AM (12/23/2008)
great design folk
have you seen the new acura's?
hahahaaahhaha
Groagun 7:54PM (12/22/2008)
Once again a little tarnish is applied to the Japanese Auto Makers reputation by their own hand. This is protectionism, plain and simple and I for one am disgusted at it. The Japanese have been fixing the price of their currency for years and most in the investment and banking world feel it is unethical. I am not one to come to the defense of the Detroit 3 but a level playing field it is not.
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digitalzombie 5:04AM (12/23/2008)
>,>;; Really? It's been like that for years. China do the same crap. It's their government they can do whatever they want. Do you know what you're talking about? So in leveling this playing field are you willing to have less purchasing power? Are you willing to have a weaker dollar? In doing so our country is less of a first world country and leans toward third world.
I ain't even a econ major and most of you guys enjoy talking out of yer asses. He get three stars for a comment like this? I should state USA made out of cheese and I should get like a million stars. Too many dumb people. Yeah that's you too James.
MoonRover 8:00AM (12/23/2008)
digitalzombie,
It is this very practice of currency devaluation that has led to most of our industries leaving this country, that and unfair trade agreements. You see digital, had the playing field been even all these years, these high paying industrial and high tech jobs(auto, steel, television, telephone, camera, etc) would still be in this country and the people would be able to afford them. And lets not forget that Japan has government paid health care, they also subsidize their auto industries Research and Development.
You might want to see the day when the only industry in America is walmart, yes walmart, well I don't. But we are well on our way if we continue to take it up the rear from every jerk-off country with a load of trash to sell, no strings attached made by slaves. Wake up, it's another man's job today but it will be yours tomorrow, you better start fighting the fire before it gets to your door.
Hugh G 7:54PM (12/22/2008)
Yo Honda, if you move your HQ to America, I want to see the following cars imported here as well...
Civic Type R
S2000 Type R
NSX Type R
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Derek 8:55PM (12/22/2008)
Just bring ANY NSX. Forget the rest, engine is in the wrong place.
Quan 7:18AM (12/23/2008)
@Derek
I love mid-engined cars too, but by that logic the GT-R, Corvette, Viper, 599 GTB Fiorano, and countless other cars, are all worthless because the engine is the front, and of course the rear-engined 911 as well.
Silva 7:42AM (12/23/2008)
You got the first one right:
Civic Type-R
But the other two should have been
S2000 Type-S
NSX-R
=P
Anti-believer 7:58PM (12/22/2008)
If they come, Los Angeles will be first on list.
I doubt if they choose the south or north.
Honda is already based in Los Angeles along with Acura.
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ken_aisin 8:02PM (12/22/2008)
Move the headquarter and the essential Japanese staff to Manchuria. Geologically, it is very close to Japan, and is located in the center of the rising Asia and Russia markets. It has rich mineral reserves. Cost of living there is low. Labor cost there is also low. Besides, Manchuria is not an unknown territory to the Japanese. Japan occupied it from 1931 to 1945.
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Mr.Oak 10:14PM (12/22/2008)
Ken_aisin: You meant Geographically. You see, geology is the study of solid matter (example: Rocks) Geography tells you where the rock is located.
Back on topic, tell this to the ignorant Americans who do not understand all the reasons why it is so difficult for American car companies to compete with the Japanese.
Currency Manipulation
Government Funded R&D
Socialized Medicine
No burdensome Retirement funds
Doesn't matter where they setup shop, I bought my last Japanese car (ever) 10 years ago.
ken_aisin 11:36PM (12/22/2008)
Thanks for the correction, mate :)
Temple 1:11AM (12/23/2008)
@ Mr. Oak
The reason why Americans don't sell well in Japan is because they don't build cars for the Japanese. 50-60% of cars in Japan are Kei-cars; tiny, 63hp, 660cc engine vehicles. This is because parking in Japan can cost $500-2,000 month. The rest of the cars sold in japan are mostly between 1.0-2.0 liters, this is because in Japan, like Europe, the taxes you pay is based on the displacement of the engine.
Also, all those things you listed the US does as well (add a 17Bil bailout to the list while you're at it). The only thing on your list that the US doesn't do is provide functional healthcare like the rest of the developed world.
Gary 1:31AM (12/23/2008)
I was in Japan a few months back, and honestly I don't remember seeing anywhere near 50% of vehicles being kei cars.
Temple 10:51AM (12/23/2008)
@ Gary
Data from last month (November):
Kei car sold Nov: 153,101 units
All cars sold total : 215,783 units,
http://news.xinhuanet.com/english/2008-12/01/content_10439792.htm
http://www.tradingmarkets.com/.site/news/Stock%20News/2056338/
jolietjake 3:05AM (12/24/2008)
I suspect states with strong lobbying in Japan will all be up for consideration. California is by far the strongest, but don't count out places like Indiana or Virginia which have a lower costs and a constant stream of politicians making trips to Japan to court these guys.
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