Following in the footsteps of Toyota, Japanese automaker Honda will reportedly manufacture components, including batteries and electric motors, for some of its hybrid vehicles in China, starting in 2012. The production shift is meant to reduce the cost of Honda's hybrid vehicles sold in China and, hopefully, boost sales there, too.

During a recent interview, Honda China's chief executive officer, Seiji Kuraishi, stated that it's difficult to reduce costs when importing electric motors and batteries from Japan. Local production of these vital components is a feasible way to cut costs and decrease the price of its hybrids sold in China.

In 2012, Honda will launch five hybrids in China: the Insight, CR-Z, Fit, Civic and an undisclosed gas-electric Acura. These tea leaves lead us to believe the reported timing of the production shift is spot on.


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    • 1 Second Ago
  • 11 Comments
      Ford Future
      • 4 Months Ago
      I welcome China's Self Imposed trade Barriers, they will allow Americans to have jobs.
      JoeP
      • 4 Months Ago
      When I read the headline, I thought Honda was going to get those components for all its cars from China, but the article itself seems to be saying that that Honda will source the components for its China cars in China. Am I not seeing things correctly?
        Marco Polo
        • 4 Months Ago
        @JoeP
        Yes, you seem to be the only person to have read the article correctly.
      • 4 Months Ago
      Sorry Honda, I'd rather to buy any other, not the "MIC" Honda.
      Sasparilla Fizz
      • 4 Months Ago
      This allows Honda (like Toyota) to buy rare earth components (which for the motors and NiMH batts in a Hybrid are substantial) at drastically lower costs - compared to what they can get outside of China due to China cornering the world market on the extraction and refining of these elements and restricting export - any godfather worth his salt would be proud. I can't blame either automaker, but the implications for long term hybrid and EV auto industry production outside China are not good.
        Michael
        • 4 Months Ago
        @Sasparilla Fizz
        Maybe if every other country in the world that had rare earth reserves began mining them, China wouldn't be in such a strong position. The US has vast known reserves of rare earths, but the majority of the mines had been shut down due to the low cost that China was selling their extracted ore for previously. The long term implications for Hybrids and EVs look quite rosy, and with the need for even more rare earth metals, I expect we will see other countries re-opening (some of) their shuttered mines.
      Marco Polo
      • 4 Months Ago
      Well said, micheal
      2 Wheeled Menace
      • 4 Months Ago
      I am sure it would piss off the native Japanese far more than it does us when we get outsourced.. I can get behind cheaper hybrids, bringing the car to more people.. but... i feel for em.
      Dan Frederiksen
      • 4 Months Ago
      the lighter and more aerodynamic the car is the cheaper the electric components to move it.. you can produce the CR-Z with slave labor, it's still the wrong car.. light and electric, Honda. time to wake up
      founerra
      • 4 Months Ago
      China, Wang will make battery for 100 dollar, and Wong will make motor for 100 dollar
      mexicanjetta
      • 4 Months Ago
      As if i needed another reason to not buy a Honda.