Honda threatens to leave and cripple Japan unless the Yen is lowered

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Honda threatens to leave and cripple Japan unless the Yen is lowered

Honda is dropping dark hints about its future as a Japanese domestic industry. In fact, if the Japanese government doesn’t reduce the strength of the Yen, HoMoCo may up stakes and move.

The head of Honda Motor Co warned the strong yen could cripple Japanese industry and spur massive layoffs, and said the automaker would be forced to take more production overseas if the dollar persisted below 100 yen.

Honda, Japan's No.2 automaker, this week slashed its operating profit forecast by two-thirds to 180 billion yen ($2 billion) for the business year to March 31, dragged down by an estimated currency loss of twice that amount.

Expressing frustration with Japanese authorities' slowness to act, Fukui said Honda had set long-term business plans at what was until recently a cautious assumption of a 100-yen dollar, and that any level below that would necessitate a fundamental rethink of the way the company operates.

... Quote:
Chief executive Takeo Fukui told a small group of reporters in Tokyo on Friday the strong yen could cripple Japanese industry and spur massive layoffs, and added the automaker would be forced to send more production overseas if the dollar persisted below JPY100.

If the government is saying, ‘We don’t care about the export industry’, then that’s fine - we’ll act accordingly… we could switch to importing more cars into Japan, bring research and development facilities overseas, and in an extreme scenario move our headquarters offshore. It would cause nothing short of a hollowing out of Japanese industry.


Now thats what you can do when your auto industry has respect and power.

 http://in.news.yahoo.com/13...
By netchicken: posted on 21-12-2008








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