Comments on: Honda to go truly global - may sell Chinese Hondas in the USA http://www.chinacartimes.com/2008/04/23/honda-to-go-truly-global-may-sell-chinese-hondas-in-the-usa/ Explaining the Chinese Car Industry and Chinese Cars Fri, 21 Nov 2008 19:58:53 +0000 http://wordpress.org/?v=2.2.2 By: Mememe http://www.chinacartimes.com/2008/04/23/honda-to-go-truly-global-may-sell-chinese-hondas-in-the-usa/#comment-44961 Mememe Wed, 23 Apr 2008 20:30:29 +0000 http://www.chinacartimes.com/2008/04/23/honda-to-go-truly-global-may-sell-chinese-hondas-in-the-usa/#comment-44961 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. 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.

]]> By: Ash http://www.chinacartimes.com/2008/04/23/honda-to-go-truly-global-may-sell-chinese-hondas-in-the-usa/#comment-44934 Ash Wed, 23 Apr 2008 17:47:55 +0000 http://www.chinacartimes.com/2008/04/23/honda-to-go-truly-global-may-sell-chinese-hondas-in-the-usa/#comment-44934 proof of this? proof of this?

]]> By: I_Hate_China http://www.chinacartimes.com/2008/04/23/honda-to-go-truly-global-may-sell-chinese-hondas-in-the-usa/#comment-44865 I_Hate_China Wed, 23 Apr 2008 13:04:40 +0000 http://www.chinacartimes.com/2008/04/23/honda-to-go-truly-global-may-sell-chinese-hondas-in-the-usa/#comment-44865 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. 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.

]]>