If Honda Australia’s performance this month is anything to go by, the Japanese company is in serious need of revitalization. The once premium Japanese brand has seen its Australian marketshare shrink in recent times.
As part of its plans to be more competitive, Honda is planning to cut its Japanese exports by up to 50 percent over the next decade. This will see it produce more vehicles offshore to combat the rising value of the Japanese yen.
Honda CEO Takanobu Ito admitted to Japan’s Asahi newspaper that the company is expecting to reduce exports from its homeland to around 10-20 percent of overall production (currently 34 percent for the last business year that ended in March 2011).
The yen has hit a ten year high against the Euro, which has put a noticeable dint in the company’s overall profitability.
The real questions here is whether or not it’s the price of Honda’s product that need reducing, or the products themselves that need replacing? Honda Australia currently imports the Jazz, most Civic variants, CR-V and standard Accord from Thailand.
Honda has always been one of the best recognized Japanese brands for innovation, reliability and modern engineering. Many of its iconic products pioneered the Japanese car industry and established the brand as an leader in its glory days. Here’s hoping the company can reclaim its former status and get back on top.
Will the off-shoring of more vehicle production have a negative effect on the public perception of the Japanese brand? Tell us what you think.