Question

Why Did Honda Move Some Production to the U.S? In 2012, an executive at Honda Motor...

Why Did Honda Move Some Production to the U.S?
In 2012, an executive at Honda Motor Company announced that the firm would be moving more of its car production from Japan to the U.S.

Homework Answers

Answer #1

Honda move some production to the US because in US there was a huge demand of car in US. From 1987 to 2012, Hond export more than 1 million cars which were made in US plants. As per the statement given by the honda on its website that honda builds about 70% of vehicle sold only in US. Their was one more reason is that during that time the value of Yen was declined by central bank, so due to this the revenue generated from Japan was decreased and one of the main supplier of in japan name Yachio was desperate to increase his sale of more than 50% of non honda made vehicles but he wants different types of car like sunroof, plastic fuel tanks etc. So for improving sales figure and revenue, firm shifted its production to US from Japan.

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