Automotive News reports Honda is currently limiting shipments of models like the Fit, CR-Z and Insight due to Japan's strong yen. The automaker admits it is currently losing money on every Japanese-built model it sells in the U.S. with the exchange rate currently at 80 yen per dollar. Honda is currently working to move more production to North America and source more components from this side of the Pacific, though such a shift will take time. In the interim, the manufacturer is carefully allocating Japanese-manufactured models. Honda says it has no intention to cut off Fit, CR-Z or Insight shipments altogether.

Honda builds around 85 percent of the vehicles it sells in North America on the continent, which is significantly more than companies like Nissan or Toyota. Even so, this marks the first time Honda has gone on the record as saying importing cars from Japan costs more money than it makes.

So, why sell these models at all? Automotive News reports Honda needs the vehicles to keep segments covered and to keep its customers coming back to showrooms.


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    • 1 Second Ago
  • 98 Comments
      lbthedawg
      • 2 Years Ago
      It all goes back to currency manipilation. When the Bank of Japan cut their prime to an effective zero back in 97, the Japanese automakers raped the American firms. They printed money by shifting it back and forth across the dateline. When the fed cut "our" rate to zero a couple years ago, that collapsed. And they told us there was no manipulation. Guess that was a lie.
      A C Reynolds Jr
      • 2 Years Ago
      The American public wants job in America, but they buy these overseas products. Yes I do understand how an economy works. If Your Mother owns an automobile manufacturing plant and you buy another brand/product your family doesn't have that income from your purchase. Therefore your family's income is reduced. It is that simple! American automobiles are just as reliable and contain all of the bells and whistles as those brands from Germany, Japan and Korea. I earn my living in America, therefore I will buy American Products, therefore my children will have jobs. (period) Go Ahead America! Your College graduates can always get a job "making the fries at McDonalds."
      TBN27
      • 2 Years Ago
      I so wonder what is causing their currency to be so strong? It has been like thes for 4 years now.
        Buckus Comments
        • 2 Years Ago
        @TBN27
        Perhaps it's not that the Yen is so strong, but that the dollar is so weak...
          axiomatik
          • 2 Years Ago
          @Buckus Comments
          Not really. If you look at various exchange rates over the past 10 years, you see the same trend. It is not limited to the USD: Yen to USD: http://www.xe.com/currencycharts/?from=JPY&to=USD&view=10Y Yen to Euro: http://www.xe.com/currencycharts/?from=JPY&to=EUR&view=10Y Yen to GBP (British Pound) http://www.xe.com/currencycharts/?from=JPY&to=GBP&view=10Y Yen to CAD (Canadian Dollar) http://www.xe.com/currencycharts/?from=JPY&to=CAD&view=10Y Yen to AUD (Australian Dollar) http://www.xe.com/currencycharts/?from=JPY&to=AUD&view=10Y In all of the graphs, there is a big change starting in 2007, with the value of the Yen climbing precipitously. Yes, the dollar is currently somewhat weak, but the Yen is strong across the board.
      ppl r getin dumber
      • 2 Years Ago
      MY 1994 Prelude VTEC. MADE IN JAPAN! 297k with leaking engine oil, brake oil n clutch oil since 2003 still runing like a charm. I prefer Jap cars Made in Japan than the u.s.
        axiomatik
        • 2 Years Ago
        @ppl r getin dumber
        @ppl Is your username self-referential?
        • 2 Years Ago
        @ppl r getin dumber
        [blocked]
      Mel @ aWingThing.COm
      • 2 Years Ago
      Honda continuing to showcase their fall from grace.
        g2k
        • 2 Years Ago
        @Mel @ aWingThing.COm
        keep telling yourself that
          Buckus Comments
          • 2 Years Ago
          @g2k
          have you seen their current lineup? Reminds me of the crap Chrysler put out in the early to late 2000's and kept telling themself it was great. Hey, if they say it often enough, it's true, right?
          • 2 Years Ago
          @g2k
          [blocked]
      Jerry--ZL1
      • 2 Years Ago
      " Honda losing money " hmmm.......... Who cares ? It's Honda, their already rich they can afford to lose money on a car for once, even the playing field with GM a little bit
        IBx27
        • 2 Years Ago
        @Jerry--ZL1
        His already rich, her already rich, my already rich, their already rich. They're. Are you in second grade?
          • 2 Years Ago
          @IBx27
          [blocked]
      reattadudes
      • 2 Years Ago
      looks like a big boo-hoo for Honda, and all the Japanese companies. if Honda is losing money on Japanese built vehicles, then so are the other Japanese companies. its kind of funny how fate comes back and bites on the ass. up until the mid 80s, ALL Japanese companies were selling cars here in the US for less than cost, just to build market share. when the US government threatened anti-trust action, the Japanese manufacturers backed off. then they cooked up a scheme with the Japanese government to grossly undervalue the Yen. that held until about four years ago, and international market pressures and a bad worldwide economy blew that scam to smithereens. now they're stuck on an even economic playing field (something they've never experienced), and they don't know what to do. just imagine that for a moment. they have a shrinking home market that will NEVER grow, and they can't afford to produce their own products at a profit from their home factories. not a good place to be.
        • 2 Years Ago
        @reattadudes
        [blocked]
          jtav2002
          • 2 Years Ago
          It's just the typical anti-foreign we want to stick it to them for things people who aren't even alive anymore did to us 70 years ago crap. Forget that there's a logical explanation.
          • 2 Years Ago
          [blocked]
      Keldon
      • 2 Years Ago
      Gee i wonder if it has anything to do with the fact that Honda's designers are stuck in the nineties?
        Stew
        • 2 Years Ago
        @Keldon
        Gee, I wonder if you actually read the article before posting.
        aeheywood
        • 2 Years Ago
        @Keldon
        Like their Indy engines............?
      IBx27
      • 2 Years Ago
      "Keep their customers coming back to showrooms"...with cars that are going on half a decade old? Bringing production stateside will do nothing but destroy the build quality the Fit is known for.
      yyz
      • 2 Years Ago
      Maybe if we lowered our corporate taxes, Honda would build their factory in the US instead of Mexico. What a novel idea. The US has the highest corporate taxes in the world. And there is one party that likes it that way. Its the whole struggle against the 1%, don't you know. So the 99% say "yeah, stick it to the evil corporations" as they watch Honda build their factory in Mexico. I guess we showed them.
        Thatsnotgonewell
        • 2 Years Ago
        @yyz
        Sadly true 35% in the US for large corporations, but we have a huge number of tax credits and many pay less, some pay nothing. The thing most people are unhappy about is the individual income tax rates on the wealthy and the low capital gains tax. This is especially true because many of the people who hold actual responsibility for the financial collapse made huge sums of money in the process. Not to mention that the Bush tax cuts that brought these taxes lower contributed more to the national debt than all other sources combined. Hopefully that gives a more complete view of the situation.
        MAX
        • 2 Years Ago
        @yyz
        US actual corporate tax rates are very low because of all the exemptions. "U.S. corporate taxes that were actually paid (the effective rate) fell to a 40 year low of 12.1 percent in fiscal year 2011, despite corporate profits rebounding to their pre-Great Recession heights. The U.S. both taxes its corporations less and raises less in revenue from corporate taxes than its foreign competitors:" http://thinkprogress.org/economy/2012/03/30/456005/reminder-corporate-taxes-very-low/?mobile=nc
          • 2 Years Ago
          @MAX
          [blocked]
        Big Rocket
        • 2 Years Ago
        @yyz
        @yyz: I thought you were kidding about our "highest corporate taxes in the world", but you turned out to be correct. I would suggest, next time, please include some links to help educate others interested in your viewpoint. Like this: Fox: http://www.foxnews.com/opinion/2012/03/30/no-joke-obama-corporate-tax-rates-are-worst-in-world/ Huffington: http://www.huffingtonpost.com/2012/03/30/us-corporate-tax-rate_n_1392310.html
          axiomatik
          • 2 Years Ago
          @Big Rocket
          Ha, you have to love the spin in Fox's headline. According to the article, the US corporate tax rate hasn't changed since 1993, and yet, the headline says "OBAMA'S corporate tax rates" The reality is that corporations don't pay the published tax rate, because there are many credits and exemptions. Simply comparing tax rates between countries is incredibly simplistic.
        • 2 Years Ago
        @yyz
        [blocked]
      GasMan
      • 2 Years Ago
      Honda should provide some Insight to their government instead of throwing a Fit. That is CRa-Z!
      MiddleClassMotoring
      • 2 Years Ago
      Sorry to hear about the Fit.....but just stop selling the CRZ and Insight...driven both...and they're both crap.
        • 2 Years Ago
        @MiddleClassMotoring
        [blocked]
          aeheywood
          • 2 Years Ago
          And a 'hybrid' just won Le Mans.
          • 2 Years Ago
          [blocked]
          jtav2002
          • 2 Years Ago
          I have no problem with hybrids, but the CRZ is still a stupid car. For being a hybrid the gas mileage isn't impressive at all. I still think it wasn't the greatest idea to try and make a sporty hybrid when you can make an actual sporty car with a regular engine and get very good gas mileage. The Hybrid only makes sense when you're getting close to 50mpg, otherwise there are plenty of cars that get great gas mileage without being a hybrid.
          axiomatik
          • 2 Years Ago
          "refuse to capitalize the nameplate"? oooh, that will really show Honda!
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