Last year, 34 percent of all Honda vehicles sold around the globe were produced in Japan, but that number could change drastically over the next decade. Reuters reports that Honda CEO Takanobu Ito told Japan's Asahi newspaper that the automaker will drop its exports to 10-20 percent over the next 10 years.

The reason for the switch has everything to do with the ill effects of currency swings. To prevent this from continuing to hurt Honda's bottom line, executives reportedly plan to make 80-90 percent of its vehicles in the main markets where they are sold. But just because Honda plans to export fewer vehicles from Japan doesn't mean that the automaker will board up some of its home plants. Instead, Honda plans to keep production at about one million units, in part by bumping production of its popular 660cc kei cars.

Honda's decision to build more vehicles in-market comes as the yen hit a 10-year high against the euro. In fact, Reuters points out that the dollar is now worth only 77 yen, which is down from 85 yen in April.


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  • 17 Comments
      thedriveatfive
      • 3 Years Ago
      This is more because there currency is in less of a bad position then it once was relatively as both the dollar and the euro have sunk due to the sovereign debt crisis in europe and our own uncontrolled spending. Its not that the yen is inherently stronger, everything else got a little weaker. Except the renmibi ofcourse...
      BipDBo
      • 3 Years Ago
      "executives reportedly plan to make 80-90 percent of its vehicles in the main markets where they are sold." Translation: We're opening plants in China.
        • 3 Years Ago
        @BipDBo
        [blocked]
      Gnacho
      • 3 Years Ago
      Dang American's stealing jobs from hard working Japanese.
      Dwight Bynum Jr.
      • 3 Years Ago
      How about they cut it to zero until they can offer some vehicles with the appeal they had 2 decades ago?! Downvote for voicing my opinion in 3... 2... 1...
      2 Wheeled Menace
      • 3 Years Ago
      Sorry to hear that, Japan. They've been in a depression for a very long time and this is not good news for them. The sad part is that when Japan manufactures stuff, they generally do an excellent job. Hanging on to my Japanese-built Nissans for dear life.. - 2WM
        • 3 Years Ago
        @2 Wheeled Menace
        [blocked]
      carfan
      • 3 Years Ago
      oh poor honda and other japanese crap...a few months ago they cut production because of the tsunami, or earthquake or both because of the samurai, or hirohito's health, now it's the yen the ying yang but why don't they finally acknowledge, it's their POS products!!!
      Michael
      • 3 Years Ago
      If they don't improve their designs soon they won't have to worry at all about where they produce and of their cars.
      DarkKnight67
      • 3 Years Ago
      All that I have to say is that while this makes good business sense, I don't want to see some state giving them huge incentives to come and build in their state when they couldn't or wouldn't give the same opportunites to American manufacturers.
      ShutoSteve
      • 3 Years Ago
      From a business perspective, it makes sense. From an enthusiast perspective, it's quite sad.
      • 3 Years Ago
      [blocked]
      Orin O'Neill
      • 3 Years Ago
      Honda is a minor player in the JDM. Europe, and especially North America, are much more important markets for the company. There was talk of Honda moving its worldwide corporate HQ to Torrance, CA several years ago...
      • 3 Years Ago
      [blocked]
        Michael
        • 3 Years Ago
        Rarely do I respond to ignorant poorly informed baboons masquerading as humans, but in your case I will make an exception. If Americans build competitive, well designed and engineered, quality automobiles Americans will buy them. How dare you insult me or any other American owner of a car with a foreign brand label on it. Do you have any knowledge of which foreign brands and models are actually built in the U.S. with American labor and contribute billions to the national and local economies? Of course you don't. You wouldn't make such an ignorant statement if you did. Do you know how many AMERICANS will lost there jobs if what you wish for were to happen? Do you know how many local economies in the U.S. would be devastated if what you wish for were to happen. Of course you don't. Your supreme ignorance prevents you from ever being able to understand your own stupidity and false sense of patriotism. God save America and its economy from people like you.
          carfan
          • 3 Years Ago
          @Michael
          I don't think she insulted you. I think she just pointed out how verySTUPID you are to buy asian junk when the American cars are so good at lot better prices than the asian...that's all
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