Mexican Media Brands
Honda Aims to Turn a Profit in Europe By 2016
Honda Motor Co. now expects to return to profitability in Europe by the fiscal year ending March 2016 two years later than it predicted a year ago, Automotive News Europe reports.
#economics
Share
Honda Motor Co. now expects to return to profitability in Europe by the fiscal year ending March 2016 two years later than it predicted a year ago, Automotive News Europe reports.
Manabu Nishimae, chairman of Honda's Europe unit, tells the online newspaper that the delay is caused by the region's declining sales. Honda expects the European auto market to shrink as much as 10% this year and drop further in 2014.
The company's volume in the region last year slid 6% to 141,000 vehicles.
To regain profitability, Honda unveiled a plan in January to shed 800 jobs at its assembly plant in Swindon, England. Nishimae says the company also aims to boost the European content of its U.K.-made vehicles to 80% within two years from 60% now, according to AN.
That effort will get a big boost this month when the European unit debuts a 1.6-liter diesel engine built in Swindon from locally sourced parts. Many components of the 2.2-liter diesel Honda currently sells in the region come from Japan, where the strong yen boosts their cost.
RELATED CONTENT
-
What Suppliers Need to Know Right Now
This is a time of reckoning for the auto industry, says Paul Eichenberg. He has some recommendations as to how companies can make their way through it.
-
On Quantum Navigation, EVs, Auto Industry Sales and more
Sandia’s quantum navi, three things about EVs, transporting iron ore in an EV during the winter, going underwater in an EV (OK, it is a sub), state of the UK auto industry (sad), why the Big Three likes Big Vehicles, and the future of logistics.
-
On Urban Transport, the Jeep Grand Wagoneer, Lamborghini and more
Why electric pods may be the future of urban transport, the amazing Jeep Grand Wagoneer, Lamborghini is a green pioneer, LMC on capacity utilization, an aluminum study gives the nod to. . .aluminum, and why McLaren is working with TUMI.