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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.
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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.
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