Honda

Karan Kukreja
S.I.D # 2054
Principles of Management
Dr. B. Odejar
09th June 2003

International Case 4 – 1
Honda Moves to the United States

1. Why did Honda build a plant in the United States (what were the objectives)? How is the plant in the United States affecting the company in Japan? What problems or advantages might the US operation give Honda in the future?

• Honda wanted to debunk the claim of the auto industry that “nobody can make an economy car in the United States at a profit”. It had a relatively small market share in the Japaneese car market and it needed an outlet to grow. These were the main reasons for Honda to start a manufacturing plant in the United States. As it is evident, they wanted to introduce an economy car to the US market and still make good profit percentages. Besides this during the early 1970’s the gas prices were very high and so they wanted to introduce a fuel efficient car at an economical price.

International busines...