Rising Yen Sends High-Performance Acura to Ohio
With the yen on the rise, Honda (NYSE:HMC) has chosen Ohio as the place to manufacture its pricey new high-tech hybrid Acura, rather than at home in Japan, according to a Bloomberg report.
Auto executives say the Acura NSX, which will be the most expensive and technologically-advanced car ever built in the U.S., will be priced at more than $100,000 when it goes on sale within the next three years, said the report. The Ohio plant will be the only place in the world the car will be produced.
Honda’s continued trend of shifting its operations to sites in North America suggests a broader tendency by Japanese automakers to escape currency-related pressure by moving their factories.
Carlos Ghosn, chief executive officer of Nissan and its alliance partner Renault SA (NYSE:RNO) has cautioned that Japan’s auto industry will undergo a “hollowing out” of domestic manufacturing if the country can’t figure out how keep the yen under control.