A stronger Japanese yen against the dollar may prompt Honda Motor (HMC) to shift production of its Fit model from Japan to the U.S. This is mainly because Fit is one of the Honda’s models that attracted attention in the U.S. but are imported from Japan. However, the strengthening of yen against dollar to around 90 is narrowing down the company’s revenues in Japan upon translation.  So far, Honda has focused on regional manufacturing strategy for its vehicles. The company produces about 80% of all the vehicles sold in the U.S. However, the 5-door hatchback Fit – introduced in Japan in 2001 and launched in the U.S. market in 2006 – is manufactured at a facility outside Tokyo.  The model gained huge importance in the U.S. due to its fuel-efficiency (30 mpg). For the first nine months of the year, Fit sales in the U.S. were ...

The U.S. auto industry showed a 1% sales gain to produce 1.3 million vehicles in August. It was the first annual sales gain since October 2007. Sales of cars and light trucks surged 30% compared to July. The spike in sales was solely attributed to the Cash for Clunkers program launched by the U.S. government in late July. The program allowed consumers to trade in their old gas-guzzling cars and trucks with a mileage of 18 miles per gallon or less for a value of up to $3,500–$4,500.  As many as 690,114 new cars were sold under the program. Toyota (TM), Honda (HMC) and Ford (F) were the largest beneficiaries of the program with their fuel-efficient lineup of vehicles. Toyota Motor sales advanced 6.4% to 225,088 units, largely due to its best-selling model on the Cash for Clunkers buy list – Corolla. Honda ...