Honda moving manufacturing out of Ohio due to yen undervaluation

April 21, 2016


(Stumo note: Japan's currency undervaluation is causing Honda to move auto production out of the United States. The article below shows a recent example of shifting from Ohio back to Japan. This is a big reason why the TPP is a stupid trade agreement because it does not fix currency undervaluation.)

John Lippert | Bloomberg News | April 21, 2016

Honda Motor Co. unveiled a gasoline-electric Accord sedan that will be exported from Japan to help deal with currency fluctuations and sluggish sales.

The company stopped making Accord hybrids in Marysville, Ohio, last year while it shifted production to its Sayama plant near Tokyo. Honda showed off the new Japan-built model to reporters Wednesday in Detroit.

“Honda is trying get back into the hybrid market with the Accord, and this is a low-risk way to do it because of multiple markets they can serve from Japan,’’ said Alan Baum, an independent auto analyst in West Bloomfield, Michigan. “Plus, making vehicles in Japan is much more profitable than it was three to four years ago.’’

Japan’s currency has weakened to about 110 yen to the dollar from 76 yen in January 2012, boosting the value of exports for the country’s manufacturers. And U.S. sales of the Accord hybrid have declined, with a 21 percent drop to 11,063 last year. The hybrid market has been dominated by Toyota Motor Corp.’s Prius, which generated 184,794 U.S. deliveries in 2015.

Honda may also export Civic small cars and CR-V sport utility vehicles from Japan to the U.S., President Takahiro Hachigo said last month. ...

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