Honda Motor, the Japanese automaker plans to almost double car production in Europe as it seeks to reduce its reliance on imports from Japan as well as to escape from the impacts of soaring yen, the Financial Times reports.
“We will deliver more production here in Europe,” the FT quoted Nishimae as saying. “It is this approach that will enable us to respond to the incredible appreciation of the yen.”
Nishimae also said the company was entering a phase of “numerous product launches,” and planned new “major products” each year for the next four years, the FT reported.
Last week Honda revised its outlook for the yen against the dollar to 78 from 80, and 106 from 112 versus the euro. The Tokyo-based automaker has said it would build its new NSX supercar in Ohio as it shifts output to North America in response to the yen’s gains.
In late January, Honda said it expects sharply lower results for the year ending March 2012 after reporting a 33 percent drop in third-quarter profit, impacted by the earthquake and the Thailand floods, as well as the historic appreciation of the yen.