REPORT: Honda likely to build Fit in the U.S.
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 the 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?
Gallery: Review: 2009 Honda Fit Sport
[Source: Automotive News - Sub. Req.]
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Reader Comments (Page 1 of 3)
Tricky dicky 4:42PM (10/19/2009)
hey we don't want to build it here, but it is financially advantageous so let's get some PR..
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2004m3driver 5:29PM (10/19/2009)
Its business, what would you expect? Them to be apologetic about building it in the US?
Mike 5:39PM (10/19/2009)
You can bet your last dollar that Ito will move prodcution back to Japan as soon as their govt starts devaluing the yen (again).
Okay, so honda opens up a new plant in the US.
Plenty of jobs, stimulates the economy, very cool.
When the US economy goes back up, Honda is actually loosing money on the fit, however it would be profitable once production moved back to japan.
and all the good honda did here goes back to shit because the plant closed.
THIS IS WHY GLOBALIZATION WON'T WORK. At least mexico has a staady standard of living that compares favorably to the US. I'd buy a mexican built focus before I bought an american built civic anyday.
besides the mexican's are pretty legit as far as outside of the workplace.
Marti Gras>Akihabara
airswingman 5:43PM (10/19/2009)
I guess Japanese already see what is future of the US.
Dan 7:59PM (10/19/2009)
"You can bet your last dollar that Ito will move prodcution back to Japan as soon as their govt starts devaluing the yen (again)."
I don't believe any industrialized country in the world can keep up with Barack Hussein Overdrawn at devaluing their currency.
Nozferat 2:45AM (10/20/2009)
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?
Nozferat 2:47AM (10/20/2009)
DAN:
What would you prefer? That we keep spending insane amounts on military and weapons and killing like your douchebag Bush?
Frank 9:44AM (10/20/2009)
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.
Dan 4:20PM (10/20/2009)
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.
Nozferat 9:17PM (10/20/2009)
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?
Nozferat 9:17PM (10/20/2009)
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??
Turkey Pie 4:50PM (10/19/2009)
Takanobu Ito should have his balls cut in 1/2. People want Japanese made cars since it is Japanese and one day globalization will eventually fall to its knees and Ito will too.
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****WoodysCarSite.com*** 4:51PM (10/19/2009)
Does Ito know about the Fit Hybrid, so will this be made in Japan along with the Civic Hybrid and Insight Hybrid?
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Brian 4:55PM (10/19/2009)
This will be made in the USA, meanwhile, Ford chooses to build most of its cars in Mexico.
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adam 5:04PM (10/19/2009)
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
KT 5:04PM (10/19/2009)
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!
Tricky dicky 5:06PM (10/19/2009)
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.
Matt 5:30PM (10/19/2009)
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.
dal20402 6:31PM (10/19/2009)
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.
merlot066 6:40PM (10/19/2009)
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.