Wednesday, January 28, 2009

Honda Motor Co. to Cut Domestic and North America Production Further

Japanese automaker Honda Motor Co. is planning to cut further in its global production volume, within just 10 days of its first production cut got announced. Honda has recently claimed that the demand has fallen down more than what they initially expected, and that is why, Honda is going to reduce its domestic production by 21,000 vehicles to 1.15 million units for the current fiscal year. Honda will also cut North America production volume by 29,000 vehicles because of demand fall.

Alike market leader Toyota, Honda is also facing double problem at this moment. One problem is drop in demand and another problem is surging Japanese Yen against foreign currencies. As the companies like Toyota and Honda export products outside Japan, it has become a big problem for them.

Related article:

The Wall Street Journal