Honda considers moving production overseas as its CFO announces significant losses on exports.
Chief financial officer Fumihiko Ike said the company was studying possible production bases overseas rather than building its cars in Japan for export. Mr Ike said the company was losing money on its exports.
“We have a three-year plan assuming a rate of 80 yen to the dollar,” he said. “Under that assumption, the discussion to look for an alternative production base is inevitable.” Yesterday $1 was worth just over 77 yen.
Honda, the third biggest Japanese carmaker, exports 30pc of the cars it makes in Japan, compared with Nissan, which ships 59pc, and Toyota, which exports 53pc. Josephine Moulds/The Telegraph.
Image by Associated Press.