Honda to Build More CR-Vs in the U.S., Plans to Increase the use of Parts from Low-Cost Countries

The strong yen is affecting all Japanese automakers that are exporting their locally produced cars to America. Honda is one of them, as of the 72,000 CR-Vs built last year in Japan, 35,000 made their way to North America. Japan’s third largest automaker wants to invest in its North American plants to increase the number of CR-V it builds here and reduce exports from Japan, thus minimizing losses due to exchange rates.

“Our profit structure has improved mainly thanks to robust overseas operations, and the toughest area remains exports from Japan”, Chief Financial Officer Yoichi Hojo told reporters at Honda's headquarters on Wednesday. “With a little investment, we would be able to increase production of the CR-V in the United States, so that's the most probable course of action (to reduce yen exposure)”, he said.

The company official said that Honda is currently examining various options to increase the crossover’s production. One of the factories that builds the CR-V, the East Liberty plant, in Ohio, is already operating at full capacity, but the neighboring Marysville plant is at 80%, while a factory in Indiana is working at half of its total capacity.

Should the need arise, Honda could also increase the output of its Mexican and Canadian plants.

In the future, the automaker also plans to use more components sourced from low-cost countries, such as China and India.

According to Yoichi Hojo, low-cost components will account for at least 10% of the upcoming 2012 Civic, a major improvement considering that the current generation uses very few if any low cost parts. The same ratio is at 17% in the case of the Fit subcompact, but Honda is aiming for about 30%.

Honda to Build More CR-Vs in the U.S., Plans to Increase the use of Parts from Low-Cost Countries

The strong yen is affecting all Japanese automakers that are exporting their locally produced cars to America. Honda is one of them, as of the 72,000 CR-Vs built last year in Japan, 35,000 made their way to North America. Japan’s third largest automaker wants to invest in its North American plants to increase the number of CR-V it builds here and reduce exports from Japan, thus minimizing losses due to exchange rates.

“Our profit structure has improved mainly thanks to robust overseas operations, and the toughest area remains exports from Japan”, Chief Financial Officer Yoichi Hojo told reporters at Honda's headquarters on Wednesday. “With a little investment, we would be able to increase production of the CR-V in the United States, so that's the most probable course of action (to reduce yen exposure)”, he said.

The company official said that Honda is currently examining various options to increase the crossover’s production. One of the factories that builds the CR-V, the East Liberty plant, in Ohio, is already operating at full capacity, but the neighboring Marysville plant is at 80%, while a factory in Indiana is working at half of its total capacity.

Should the need arise, Honda could also increase the output of its Mexican and Canadian plants.

In the future, the automaker also plans to use more components sourced from low-cost countries, such as China and India.

According to Yoichi Hojo, low-cost components will account for at least 10% of the upcoming 2012 Civic, a major improvement considering that the current generation uses very few if any low cost parts. The same ratio is at 17% in the case of the Fit subcompact, but Honda is aiming for about 30%.

By Csaba Daradics

Source: Reuters

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2012 Honda CR-V: New Rumors and Rendering Surface from Japan

While here in the States we're still trying to find out whether or not Honda will reveal a mildly refreshed CR-V in 2010, in Japan Mag-X has already started speculating on the next-generation model. In the July issue of the magazine, there's a detailed report accompanied by an artist's impression of the 2012 Honda CR-V that is said to be introduced for the first time in October 2011 at the Tokyo Motor Show, with worldwide sales expected to begin shortly after.

According to a translation of the article provided by TOV member 'Dan', the report claims that Honda will have finalized the exterior design of the new CR-V by the end of the year. It is also stated that the 2012 CR-V will be built upon the current model's platform featuring modest increases in length, width and height (4,535mm x 1,820mm x 1,685mm respectively).

As for the powertrain options, the Japanese magazine states that the initial engine range will be carried over from today's model and include, depending on the market, 2.0-liter and 2.4-liter four-cylinder gasoline units as well as a 2.2-liter turbo diesel that is already on offer in Europe.

Mag-X also mentions that while Honda does not plan to introduce a V6 option to the range, the Japanese automaker will present an 'advanced engine' at a later stage but the report does not provide any further details on the matter.

And for those wondering about the credibility of the article, well, only time can tell if Max-X's report is based on pure speculation or on specific information provided by inside sources.