Honda is on track to surpass its 10% U.S. total unit sales gains target in the coming fiscal year. As the Middle East turmoil continues, it has allowed gas prices to shoot through the roof. This in turn, will help Honda and its lineup of affordable cars, according to Mr. Ito, head of Honda. Strong demand is expected for the Odyssey, the 2012 Civic and the 2011/2012 CR-V coming later this year. For the year through March, Honda expects to sell 1.28 million vehicles in the U.S. making $6.5 billion dollars.
Honda is considering moving more of its production base to the U.S. if the dollar is able to stabilize at its current exchange rate of 83 yen. Exports of the Mideast-bound Accords have already been switched to Ohio production and most CR-V models are expected to be switched to American production as well. The dollar would have to hit 100 yen if Honda wants to consider increasing Japan-based vehicle development and production for exports.
Mr. Ito claims that the biggest damage to Honda's bottom line in the past year or so has been due to the local production rate in North America. Honda is also considering to export more cars from China due to low capacity levels at its plants in Southern China. Mr. Ito says Honda's differentiation and unique ability to set itself apart from the competition has and will continue to be fuel economy, especially in the Accord mid-size sedan class. "We need to be best in class." This statement is solidified by Ito's decision to re-introduce a hybrid Accord following Honda's 2006-2008 Accord Hybrid that fumbled in sales.