Automotive News reports Honda is currently limiting shipments of models like the Fit, CR-Z and Insight due to Japan's strong yen. The automaker admits it is currently losing money on every Japanese-built model it sells in the U.S. with the exchange rate currently at 80 yen per dollar. Honda is currently working to move more production to North America and source more components from this side of the Pacific, though such a shift will take time. In the interim, the manufacturer is carefully allocating Japanese-manufactured models. Honda says it has no intention to cut off Fit, CR-Z or Insight shipments altogether.
Honda builds around 85 percent of the vehicles it sells in North America on the continent, which is significantly more than companies like Nissan or Toyota. Even so, this marks the first time Honda has gone on the record as saying importing cars from Japan costs more money than it makes.
So, why sell these models at all? Automotive News reports Honda needs the vehicles to keep segments covered and to keep its customers coming back to showrooms.
Honda builds around 85 percent of the vehicles it sells in North America on the continent, which is significantly more than companies like Nissan or Toyota. Even so, this marks the first time Honda has gone on the record as saying importing cars from Japan costs more money than it makes.
So, why sell these models at all? Automotive News reports Honda needs the vehicles to keep segments covered and to keep its customers coming back to showrooms.
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