The Economy

To Offset Strong Yen, Honda Might Ship Cars From U.S. to Korea

Nov. 9, 2011

The strong yen was partly responsible for a 44% drop in Honda's South Korean sales in January-October.

Honda said it is considering shipping its U.S.-made vehicles to South Korea to help offset the strong yen and other market uncertainties.

CEO Takanobu Ito told reporters that Honda will make the most of its plants in the United States and other countries to gain a foothold in the "significant" South Korean market.

The company said it also will seek to cut costs.

The strong yen was partly responsible for a 44% drop in Honda's South Korean sales in January-October.

Japanese competitors have announced similar plans. Toyota intends to import its new Camry sedan from its Kentucky plant to South Korea in January.

Toyota also is considering bringing a compact car and a hatchback from Europe, Tommy Nakabayashi, chief executive of Toyota's South Korean business, said last week.

Japanese carmakers' sales in South Korea were 21% lower in January-October than a year earlier. Sales of German vehicles rose 36% while sales of U.S. vehicles increased 8.2%.

Copyright Agence France-Presse, 2011

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