Auto makers in Europe are freaking out about excess capacity, but Honda can’t get enough of it.
With a $424.9 million investment in its Swindon, England plant, Honda is doubling down on European production, and for good reason. A report by Reuters claims that 40 percent of Honda’s sales in Europe are imports, and that means exchange rates are playing havoc with profitability.
The wire service also mentions that Honda is looking for a big push in localized manufacturing
“Honda, which has seen three straight year of losses in Europe, aims to be profitable in Europe in 2013/14, when 80 percent of cars sold in the market will be sourced from the Swindon plant.”
According to the article, Britain is now a net exporter of vehicles for the first time since 1976, and Honda says that 60 percent of Swindon production will be exported. Currently, the Civic, CR-V and Jazz (our Fit) are built at the plant.