Automobile and motorcycle manufacture Honda is reportedly shipping its US-made cars to South Korea.
Japan’s third-biggest automaker is said to be considering transporting its vehicles manufactured in the United States to Korea to help cut costs and offset the strong yen currency.
Takanobu Ito, Honda Chief Executive, said it “would make the most of its plants in the US and other countries to gain a foothold in the ‘significant’ South Korean market.”
Honda’s South Korean sales from January- October dropped dramatically by 44% and so it aims to tackle the issue by bringing back the US cars. Japanese competitors are also announcing similar schemes and rival brand Toyota also intend to import its compact car and a hatchback from Europe.
Japanese car makers’ sales in South Korea further plummeted by 21% from months January-October compared to the same period in 2010. In contrast, the sale of German cars actually increased by 36% and the sale of US vehicles rose by 8.2%.
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