Honda Motor will need to secure key export markets other than North America to sustain Japanese production levels if the dollar weakens further, chief executive Takanobu Ito has said.
Go deeper with GlobalData
Discover B2B Marketing That Performs
Combine business intelligence and editorial excellence to reach engaged professionals across 36 leading media platforms.
“It will be hard to export to North America if the dollar falls further against the yen,” Ito told Reuters Television at the Tokyo motor show.
“We will need to find export markets other than North America to keep our domestic output levels.”
North America is the biggest export market for most Japanese carmakers and yen strength against the dollar hurts the profits on cars exported from Japan.
Honda is assuming an average dollar rate of JPY91 in the financial year to March 2010, roughly in line with the current forex rate, Reuters noted.
