Topic: Honda to stop production in USA

[KB02]

I looked quick to see if anyone else had posted this information, but I didn't see it.

http://www.usatoday.com/money/autos/2008-02-27-honda-motorcycles_N.htm

[heffay]

"one efficient location" 

how is carting 25% of the U.S' bikes across the ocean efficient?  crazy bastards. 

[dusterdude]

their shipping costs must be cheap as hell.

[Gordon]

"one efficient location" 

how is carting 25% of the U.S' bikes across the ocean efficient?  crazy bastards. 

They don't make all their bikes at the Marysville plant, just the Goldwing and VTX.  According to Honda's numbers, that accounts for about 16% of their total output, which translates to just under 4% of U.S. bike sales.   

[heffay]

4%?  that's still a number bigger than i would want to consider overseas shipping for vs. what I was shipping domestically.
and, now that they're gonna ship em ALL over... it really is overseas shipping for 25% of our bikes, right?

i know there are many other figures at stake but, the story makes it sound like a ridiculously ridiculous idea.

[Gordon]

Regardless, I have a feeling they've thought it through pretty well.  If they have one huge factory that can make all their bikes, it's probably a lot more efficient than splitting up the production between multiple factories. 

And considering how many consumer goods Japan is already shipping over to us (millions of cars, electronics, etc) I doubt a few thousand more bikes per year will make any difference at all. 

[bryanj]

Well it was all shipped originally, and i believe the US plant was to circumvent( where the **** did i find that from!) import duties in place at the time

[fuzzybutt]

at least those workers wont be losing jobs, that was a big concern for me when i started reading the article. i've seen firsthand what closing a plant can do to a town.

[Raul CB750K1]

Shipping a bike is expensive. Shipping a ship full of containers is cheap. Obviously, Honda has found that the price of shipping raw material -or components- to Japan and paying lower wages makes up for savings even considering the price of shipping the final product.

Also, big companies many times get tax reductions if they stablish in a given location -have you ever asked whay many US companies are stablished in Delaware?-, and that could also explain the situation.


Seems that US is not a key market anymore. Could Honda aiming at China?

[Ichiban 4]

I'll bet some of this has to do with the falling value of the dollar over the past year or so.  Also..they don't even sell Gold Wings in Japan..too big and too expensive for most Japanese riders. 

Honda says in fact..that since the advent of the 1500 cc Gold Wings and larger..they have been designed by and for the American..and Western markets.  They were designed largely by American engineers in other words.

I've noticed that Japanese corporate announcements..including those from Honda..don't always reflect what they actually do.  Part of it is political and international gamesmanship I suspect (making announcements..to see what effect it has on sales and/or customer appeal).

Additionally..there's a National Election coming next November..which may significantly affect the political and trade attitudes between Japan and U.S.

So..for one..I am going to see how this plays out over the next 10 months or so.  Besides..what other bike besides the Gold Wing represents a serious alternative to the Harley's in their own country?

Ichi

[heffay]

evidently, you don't hang too much w/ the beemer crowd.   

[mlinder]

USofA should do the same with many of our industries.

[754]

WHAAATTT 
Beemer is making big HEAVY touring bikes ?? Say it isnt so...















I thought their forte was making big LIGHT touring bikes that made sense.. not cars with 2 wheels...landbarges..

I alway thought it was cool that my R100RT with a fairly normal looking seat (unlike a GL) could easily do a thousand mile day in good comfort...

[eldar]

Maybe this means that Honda will look back to their earlier days and go back to that instead of being so influenced by american designers that just want to copy harley or out gadget harley.

Would be nice to see some of them european style bikes come here.

[UnCrash]

Would be nice to see some of them european style bikes come here.

+1

You aint just whistling dixie boss!

[azuredesign]

I wonder if our economy is doing so poorly in the global sense that Honda feels their bikes will sell better elsewhere. Lord only knows where except for here they'll have a market for the vxt1800 and gold wing, but perhaps they feel that this segment of the market is decreasing here and they'll phase these bikes out. The market for 1.5 litre and up bikes can't continue. I don't think, if gas is going to $4.00 per gallon (87 octane) as I've heard, that many folks will be interested in even 30 mpg.

[crazypj]

Well it was all shipped originally, and i believe the US plant was to circumvent( where the **** did i find that from!) import duties in place at the time

Thats the same reason the plant was set up in Spain in the mid 70's
PJ

[736cc]

  The Gold Wing has been the best selling Honda motorcycle for many years, and must be most profitable.  More will be made public about wtf, I'm sure.

[sandcastcb750]

If Honda is like all the other Japanese manufacturers, the part content of the bikes is high percentage of Chinese parts. In Japan, they assemble alot and there is the savings.

I agree, the need to fight the 1980s tarriff is gone. So, why should they care about Marysville? Remember the 1050cc CBX was done the same way too.

Boo hoo, boo hoo