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Discussion Starter #1
http://motorcycles.about.com/b/2008/02/28/honda-says-sayonara-ohio.htm

I had heard something about this, but it is kind of too bad.

At least the employees will be able to continue working for Honda, just at the car plant.
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"Honda has announced they are relocating their U.S. motorcycle manufacturing operations to Japan. A statement quotes president and CEO Akio Hamada as saying, "This was a complex decision tied to the important role that Honda in Ohio plays within our North American automobile operations." Honda's Marysville, Ohio plant produced 44,000 VTXs and Gold Wings last year, and a total of 2.25 million motorcycles and ATVs since it opened in 1979. Also consolidating to the new plant in Kumamoto are motorcycle manufacturing operations from Hamamatsu, Japan.

Honda states that "The move reflects a global Honda strategy for production of certain larger motorcycles," and their announcement that the DN-01 sport cruiser will be available for sale in Japan this March signals a willingness to bring to life some of their recent concept bikes. The Ohio factory's 450 motorcycle-related employees won't be laid off and will be reassigned to automotive production jobs at nearby Honda plants.

Once the dust settles and the move is complete in 2009, it sure will be interesting to find out what Honda has up their sleeves in Japan."
 

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Just think....
That could start to happen at all foreign plants in the US, by all foreign manufacturers.
 

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Discussion Starter #5
I wonder if this is because of the falling dollar?
But that does not make sense as the dollar might be low today, but it will rise up again in the not too distant future.

They said the Ohio plant makes VTR's and Goldwings? I can't see alot of Wingdings in Japan. The country is very small and very crowded.
 

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Falling dollar would make it more profitable to manufacture in the states not less. I would think that higher taxes have more to do with it. But at the end, its cheaper to run one big factory than a bunch of small ones.

and duner: That could also happen to all domestic plants owned by domestic manufacturers.
 

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I'm not a brilliant and worldly as most on this site, so I am going to ask a question. Could this have anything to do with the cost of manufacturing in the US, i.e. wages, health insurance, taxes, safety, etc...) vs. the cost of shipping the Japanese made product to the US. If it is cheaper for them to manufacture in Japan, and ship to the US, does NAFTA play a role there?

Any input would be appreciated.

Jon
 

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J:
Nafta is north american free trade agreement. Its an agreement to lower tariffs between canada, usa, and mexico. Japan is not in north america so it has no role here. If Honda was to build a plant in either mexico or canada, than it would play some role.

A cheaper dollar means that more dollars can be bought for a given quantity of yen. Since american wages/health insurance/taxes/whatever is paid in dollars, honda can spend fewer yen on them. Also, it would make more sense for a manufacturer to make things in the US (paying all the expanses in dollars) and sell abroad since they can now outbid manufacturers in countries with more expensive currency.

In other words:
Weak dollar is good for exports, good for manufacturing.
Strong dollar is good for imports, good for retailers.
Dollar going up: Good for lenders
Dollar going down: good for debtors
 

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J:
Nafta is north american free trade agreement. Its an agreement to lower tariffs between canada, usa, and mexico. Japan is not in north america so it has no role here. If Honda was to build a plant in either mexico or canada, than it would play some role.

A cheaper dollar means that more dollars can be bought for a given quantity of yen. Since american wages/health insurance/taxes/whatever is paid in dollars, honda can spend fewer yen on them. Also, it would make more sense for a manufacturer to make things in the US (paying all the expanses in dollars) and sell abroad since they can now outbid manufacturers in countries with more expensive currency.

In other words:
Weak dollar is good for exports, good for manufacturing.
Strong dollar is good for imports, good for retailers.
Dollar going up: Good for lenders
Dollar going down: good for debtors
I guess I should have realized about NAFTA. :loser: Its been a long day. LOL! Thanks for the tutorial, it actually makes alot of sense to me.
 
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