• Oct 19, 2009
Honda Fit Sport - click above image for hi-res gallery

What goes up, must come down. And in this situation, Japan's yen has gone up when compared to our dollar -- about eight percent since August. And with the yen's rise in value, the profitability of low margin cars like the Honda Fit goes down. Built in Japan, with the yen up, the strong-selling Fit isn't making Honda any money. That's bad.

What if, like 80 percent of all other Hondas sold in the US, the Fit was manufactured right here? Well, that would certainly bring costs down and move Fit-related profits right back up. This switch could happen sooner than later, as Honda sales are down 25 percent over the first nine months of 2009, while Fit sales are only down 12%.

Honda president Takanobu Ito said t
he change from Japanese to American production a "highly likely possibility." Ito noted that Honda likes the current manufacturing ratio of 80 percent US/20 percent Japan, but says that more hghi tech models (such as hybrids, maybe even sports cars) should come from Japan while the more basic, Fit-like stuff gets built here. Makes economic sense, no?



[Source: Automotive News - Sub. Req.]


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  • 36 Comments
      • 5 Years Ago
      Yesterday I defend Ford because GM share market going to rise. But everyone said Ford owe alot of money not to govt so everyone said Ford is unhealthy hey at least compare to GM and Chrysler Ford is actually gaining some market, if you talk about profit then you must slowly think how much does Ford sell each cars and how much does Ford have to pay Mexican and American here to assemble the car? If they could cut cost here there then Ford could make profit in every car Ford made and sell.

      Now back to Honda building car here, I do like Honda if Honda can make more job here then its good because I read Honda also EXPORT the cars that are made in USA come on since when USA export something to other countries? This is a GREAT news so USA can balance the import and export too.
      • 5 Years Ago
      Woohoo weak dollar! Bring that sucker down! We may not be able to afford anything, but at least we'll all have jobs!
      • 5 Years Ago
      I actually read "hghi" like 4 times in my head, trying to pronounce it as some kind of Japanese word, before I realized it was just high spelled wrong. Ugh Mondays.
        • 5 Years Ago
        Oh. There it is. -_______-
      • 5 Years Ago
      hey we don't want to build it here, but it is financially advantageous so let's get some PR..

        • 5 Years Ago
        You two idiots make it sound like this overspending problem started in 2008. Excuse me but who sent this country back 50 years in both respect, stature, and economy strength between 2000 and 2008? Obama?

        I don't like Obama much but I'm not that big of an idiot to blame the last 8 years of utter crap on him and him alone. Perhaps if Mr. Bushit wasn't busy fking over other parts of the world and trying to help his own country out, we'd not be in such a mess economically and financially.

        You don't seem to mind that Bush had no problem taking money from the Chinese to finance his trillion dollar war now do you?
        • 5 Years Ago
        It's amazing regarding the arrogance of some of you to criticize Honda for doing what it is doing by building cars HERE in the US and employing US citizens...something your own corporations can't and won't do...including all your crap Big 3 auto industries that are too cheap to even build new cars like the Fiesta in this country.

        So why the fk should Honda give a crap about you when your own government and own US corps don't give a rat's ass about you?
        • 5 Years Ago
        This administration didn't just outspend Iraq in the past 9 months. They put more on the credit card in those 9 months than 8 years of adventures in Iraq and Afghanistan combined.

        The Obama deficit for this year would cover every military action the US has been involved in since the Vietnam war with several hundred billion to spare.

        The CBO projects that the deficit spending for the first 4 years of this administration will be higher - in inflation adjusted dollars - than the sum total of all US military action since World War II.

        We're sprinting towards an Argentine style currency collapse. Talking about Bush isn't going to solve that.
        • 5 Years Ago
        In 9 months Obama has spent more money than in the last 8 years in Iraq. How's that for insanity? I won't stupe to your level and call him names, I'll just say that that's a heaping bowl of Not Good.
        • 5 Years Ago
        You two idiots make it sound like this overspending problem started in 2008. Excuse me but who sent this country back 50 years in both respect, stature, and economy strength between 2000 and 2008? Obama?

        I don't like Obama much but I'm not that big of an idiot to blame the last 8 years of utter crap on him and him alone. Perhaps if Mr. Bush wasn't busy freaking over other parts of the world and trying to help his own country out, we'd not be in such a mess economically and financially.

        You don't seem to mind that Bush had no problem taking money from the Chinese to finance his trillion dollar war now do you??
        • 5 Years Ago
        Its business, what would you expect? Them to be apologetic about building it in the US?
      • 5 Years Ago
      The Fit Vs Fiesta battle will be fun to watch.
      • 5 Years Ago
      Profits? Profits ?! We don't need no stinckin' profits. Mr Toyoda as he installed his grandson in charge of Toyota and promised to take no actions to get competitive, and fired the CEO who proposed to do just that.

      Apparently, he likes to claim that Toyota is first in everything, including losing more money than GM or Chrysler combined.
      • 5 Years Ago
      "...Built in Japan, with the yen up, the strong-selling Fit isn't making Honda any money."

      "...Ito noted that Honda likes the current manufacturing ratio of 80 percent US/20 percent Japan..."

      Thanks for the news flash Mr. Obvious!

      You can bet your last dollar that Ito will move prodcution back to Japan as soon as their govt starts devaluing the yen (again).
        • 5 Years Ago
        I would take that bet.

        For one, they've been using the ratio "80/20" for years, no matter the changes. For example, the 100%-Japan S2000 has been cancelled. Yet the media still reports an 80/20 ratio. Secondly, you're overestimating the number of Fits sold in the big American Honda picture. It's not enough to make a significant dent in that already-no-so-precise percentage ratio.

        In other words, even after they start producing Fits in the U.S., it will still be declared an 80/20 US/Japan ratio.
      • 5 Years Ago
      You two idiots make it sound like this overspending problem started in 2008. Excuse me but who sent this country back 50 years in both respect, stature, and economy strength between 2000 and 2008? Obama?

      I don't like Obama much but I'm not that big of an idiot to blame the last 8 years of utter crap on him and him alone. Perhaps if Mr. Bush wasn't busy freaking over other parts of the world and trying to help his own country out, we'd not be in such a mess economically and financially.

      You don't seem to mind that Bush had no problem taking money from the Chinese to finance his trillion dollar war now do you?
      • 5 Years Ago
      okay sorry to complain, but this

      I'm asking you a question, no?

      stuff has got to stop. there are at least two articles on the first page of this blog right now (this & toyota mark x) that employ this incredibly annoying device (", no?") ... and it's just getting way out of control. it's not one specific author doing it; it's all of you. in fact it's all of the AOL blogs; well, really i just noticed it's also in almost every engadget article as well.

      again sorry to complain, but i can't take it. i just can't take it anymore.

      please stop. it is so, so lame.
      • 5 Years Ago
      This will be made in the USA, meanwhile, Ford chooses to build most of its cars in Mexico.
        • 5 Years Ago
        Matt and Brian,

        Way to be ignorant trolls and completely ignore the fact that Ford has the #1 US Made vehicle (which also happens to be the #1 selling vehicle also, which is a double win for the US) the F-150. Also, Ford still has a much higher percentage of American Content/ American Assembled cars than Toyota or Honda, and the profits from said cars (built in the USA or otherwise) goes back to our government. I'd rather have Ford with 30% of it's overall production/ parts being foreign (meaning Mexico or Canada) rather than Toyota having 50% of it's cars made in America, and the other half made in Japan, with the majority of profits going to the Japanese government.
        • 5 Years Ago
        Profits? GM, Ford, and Chrysler aren't MAKING ANY PROFITS! lol.
        • 5 Years Ago
        That press release says nothing about a profit.
        • 5 Years Ago
        1) Canada and mexico are open markets, Japan is not.
        2) According to autonews production figures this week 75% of ford vehicles this year are assembled in the US, not even counting the J/V production (mustang mazda 6).. so check your facts retard.
        • 5 Years Ago
        Yes, sales are up, expenses are down = Profit. It's not the only profit (poor word choice) but Ford was the only one to have an increase in sales for Q3.
        • 5 Years Ago
        Did you know that the Camry is built in the USA and has an 80% USA parts content while the imported Fusion appliance is built in Mexico and uses a pitiful 50% USA parts content?

        Bold moves.

        Ford hates to do actual work.....it's much easier for them to build their appliances in Mexico than to figure out how to make them here.

        Ford......always taking the easy way out.
        • 5 Years Ago
        What about this story made you think Ford was relevant to it?

        Oh, that's right, you don't care about making on-topic posts or contributing to the discussion; you just care about insulting Ford.
        • 5 Years Ago

        For the same reason Honda wants to move Fit production over here...TO MAKE A PROFIT.

        Ford can't make as much profit building it here because the labor cost is too high. Honda can't make a profit building it in Japan because the yen has weakened.

        Thanks for reinforcing your Moron status!
        • 5 Years Ago
        Ford. And if you don't believe their balance sheet, then write a letter to the SEC so they can tell you what an idiot you are.
        • 5 Years Ago
        most? seriously dude your such a hack.

        if you have a problem with ford building cars in Mexico then contact your local representative and tell them to work on adjusting our horrible trade agreements with south American countries. Mexico has better trade agreements down there so it makes for a better deal for manufacturers

        i know they're only moving production here because of the yen being valued highly, but hey more jobs and we need them so im not gonna complain one bit. plus the fit is a nice little car
      • 5 Years Ago
      Online store offers verity of Honda parts and accessories including new replacement auto parts, aftermarket parts, original/OEM parts, refurbished/remanufactured/rebuilt auto parts and used part locating services. Our site offers online access to multiple automotive part stores.
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      • 5 Years Ago
      Wow, now dumb and dumber take a Honda thread and turn it into a Ford bashing. Jealousy is a bitch ain't it....
        • 5 Years Ago
        BTW, what products do the "domestics" have that stacks up against the Fit? The Focus? Cobalt? Caliber? Ahahahahaha! Nope!
        • 5 Years Ago
        I'll go ahead and bash GM too. They've destroyed their American plants, sending jobs overseas (take a look at Flint sometime) while the transplants like Honda have invested heavily in Ohio.
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