Honda -> Not As Rosy

Even though Honda has had great recent US sales, great vehicle accolades and more, the world-wide picture is not as great. Japanese sales were down 3%, not much but Honda was hit by tough competition by domestic automakers in Japan. After sales dropped, it appeared that Japan's plant's annual profit dropped 5% also after production costs rose. Honda also says that another problem is the poor exchange rate of yen. Also, production in Great Britain is in a big problem hole. Difficult problems for Honda in UK is the domestic currency which in turn, making high production costs and the impossibility of expanding the plant. Currently the Swindon plant cannot be expanded because of no room but the Turkey plant is expanding with lower production costs.

Honda expects the final 2007 profit to drop 3%.