Honda recently announced that it produced its 1millionth vehicle that was built for export, coming off an assembly line at a factory in Marysville, Ohio, near Columbus.
According to the automaker, it expects to export more cars built in North America than it imports from Japan in the next two years. The Detroit Free Press reported that 85 percent of the vehicles that the Japanese automaker sales in the United States are made at seven Honda factories in North America, which includes four in the United States. Honda also reported that it plans to export close to 100,000 Honda and Acura vehicles from the United States this year.
Honda is planning to raise production in North America like other Japanese automakers as a result of not making much money on vehicles that are imported from Japan because of strong yen, the source reported.
Sales of the Honda and Acura brand cars are making a comeback this year, increasing by 24 percent through November, which was helped along by a 57 percent jump in vehicle production at its North American plants.
“It’s something they can do, and they’ve got a supply base here they’re very comfortable with to achieve that,” said Alan Baum, principal of auto-industry researcher Baum & Associates in West Bloomfield, Michigan. “They already import so little it’s not that big a
stretch for them to be a net exporter.”
Other automakers announcing expansion
Toyota Motor Corporation, which is Asia's largest automaker, Nissan Motor Company and other Japanese car manufacturers also recently announced plans to expand production at North American plants. The companies are also planning to export to markets that are beyond the region to answer the threat of strong yen diminishing the profit of sales in the United States.
“While Toyota doesn’t have a specific target, the U.S. will continue to be a significant export hub for the company, as evidenced by a 52 percent increase in volume this year,” said Javier Moreno, a spokesman for Toyota’s North American unit. “We expect that number to continue to increase in the future.”
With production expected to increase across the automotive market among Japanese car manufacturers, more Americans might look to head to new car dealers to secure auto financing for one of the cars if they deem it as being a solid reliable choice.