Honda Motor, Japan’s third-biggest automaker, may export cars from the United States into South Korea in a try to avoid the strength in the yen and other market uncertainties, its chief executive Takanobu Ito said on Wednesday.
The executive said that Honda would make the most of its plants in the United States and other countries to gain a foothold in the “significant” South Korean market.
The strong yen contributed to the 44% decline in Honda’s South Korean sales in the January-October period.
Nikkei reports that an auto industry group official said last week that the yen’s appreciation could result not in a mere hollowing out of the Japanese car industry , but a full collapse, as the yen is far too strong for companies to endure just by cutting costs.
Honda said its net income in the first half-ended September 30 totaled 92.2 billion yen ($1.17 billion), a decrease of 77.4 percent from the same time a year ago.
Revenue from nearly all regions declined. Domestic sales were down 13.2 percent, revenue from Europe sank 10.4 percent, and in Asia outside Japan sales fell 10 percent.
The Japanese government needs to take action against the strength of the yen to protect jobs, Toyota Motor Corp. President Akio Toyoda said today in Tokyo.
Honda shed 3.7 percent to 2,406 yen, under-performing rival automakers. Toyota added 0.5 percent while Nissan Motor Co advanced 1.7 percent.