These days, the difference between a multi national and a global company is massive. Global companies seem to have only an origin, but dont truly define themselves as a certain nationality. Nike, for example, has its origins in Oregon, USA, but after 50 years of global expansion with factories in Asia, and outlets in seemingly every country in the world could they still be considered a truly American company?
Honda may well be on the way to following in Nikes footsteps. Honda has factories in China via a joint venture with its Chinese partners, Dongfeng and Guangzhou Autos. Guangzhou Autos and Honda are already making Honda Fit super minis for the Chinese market and interestingly enough, exporting them to Europe as well. A Japanese Honda executive once visited the Guangzhou Honda factory, and could not tell the difference a Chinese built Honda, and a Japanese built Honda, presumably the contrast would have been as easy as looking at what side the steering wheel was on. Honda representatives at the Beijing Auto Show last week mentioned that Guangzhou Honda could potentially sell their wares to the American market if market demands required more cars, and also stated that Honda factories in Japan and China are at the same level of quality.
Chinese made Hondas in the USA? Perhaps sooner than you think.
This is just a lip-service on Honda’s part.
It costs more to assemble an export-model Honda Fit in China than in Japan, since export models have 90% Japan-originated content, as opposed to 50% for Chinese-market models. The only reason Honda assembled Euro-market Fit in China was to gain 66% of share in its required Chinese joint-venture. It wasn’t for cost-saving.
While this may sound shocking to the Chinese, automobile industry is not labor intensive in terms of overall cost and it costs more to assemble a Honda in China than in Japan due to parts logistics.
The only way this could happen is if Honda’s Japanese factory is running at 100% capacity and Honda needs additional capacity, but this isn’t happening yet.
proof of this?
I’d say the good proof is Honda’s future action. For the time being I won’t take this guy seriously, I wait for honda.