Honda to open first factory in Japan in nearly 50 years

Honda has announced that it will invest in its home market and open a new assembly plant in Japan capable of building up to 250,000 new cars annually.

The move comes amid a weakening yen, which could help Japanese automakers build vehicles more profitably for export. For years, the strong Japanese currency has hurt the country's exporters and their ability to make money on vehicles built at home. As a result, Honda and its Japanese rivals have invested heavily in building vehicles outside of Japan and manufacturing at home has taken a nose dive. 

But over the last three months, the yen has fallen 12 percent against the U.S. dollar. 

Honda will build its new plant in Yorii, a small city located about two hours northwest of Tokyo. 

The automaker's decision to open a new plant domestically is a sign that Japan's faltering economy is on the rebound, analysts say. 

Not only will Honda directly provide jobs to a city with a particularly weak economy, its suppliers will also open up shop nearby. The Yorii government anticipates that about 3,800 jobs will be added to the city by 2017 when the plant is fully operational. 

Honda says that it will build smaller vehicles including its Fit in Yorii, although the plant is unlikely to be tapped for export models. The next-generation North American Fit will be built in Mexico. 

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Japan In February 2013: Down 8 Percent

Japanese automobile sales were down eight percent in  February 2013, compared to the same month in the prior year. This according to consolidated data by the Japan Automobile Dealers Association and the Japan Mini Vehicles Association.

Regular vehicle sales Japan February 2013
Manufacturer	Feb ’13	Feb ’12	YoY	YTD ’13	YTD ’12	YoY
Daihatsu	159	287	-44.6%	354	486	-27.2%
Hino	3,523	3,094	13.9%	5,842	5,451	7.2%
Honda	28,736	50,440	-43.0%	49,696	94,709	-47.5%
Isuzu	4,417	4,657	-5.2%	7,512	8,101	-7.3%
Lexus	3,647	3,554	2.6%	7,211	6,712	7.4%
Mazda	15,720	14,115	11.4%	28,355	26,977	5.1%
Mitsubishi	7,063	5,655	24.9%	12,323	10,404	18.4%
Mitsubishi Fuso	2,602	2,638	-1.4%	4,219	4,646	-9.2%
Nissan	53,928	55,679	-3.1%	98,138	95,329	2.9%
Subaru	10,252	7,606	34.8%	20,339	13,523	50.4%
Suzuki	7,147	7,613	-6.1%	12,325	13,984	-11.9%
Toyota	135,475	158,877	-14.7%	240,830	283,510	-15.1%
UD Trucks	598	690	-13.3%	1,081	1,246	-13.2%
Other	19,132	18,308	4.5%	33,507	31,402	6.7%
Total	292,399	333,213	-12.2%	521,732	596,480	-12.5%
Domestic	266,704	308,392	-13.5%	476,053	553,722	-14.0%
Imports	25,695	24,821	3.5%	45,679	42,758	6.8%
Data courtesy Japan Automobile Dealers Association

Sales of regular vehicles, tallied by the Japan Automobile Dealers Association, were down 12.2 percent, a sixth month of decline after the stop of government subsidies. Sales of imported vehicles resist the downtrend. In February, nearly 10 percent of all regular cars were made outside of Japan, 6.5 percent by non-Japanese makers.

Mini vehicle sales Japan February 2013
Manufacturer	Feb ’13	Feb ’12	YoY	YTD ’13	YTD ’12	YoY
Suzuki	52,090	52,018	0.1%	96,749	94,346	2.5%
Daihatsu	59,765	63,969	-6.6%	105,810	117,763	-10.2%
Mitsubishi	6,283	8,875	-29.2%	11,256	16,222	-30.6%
Subaru	5,212	9,572	-45.5%	8,917	18,327	-51.3%
Honda	37,663	26,715	41.0%	72,356	46,494	55.6%
Mazda	4,844	5,247	-7.7%	9,988	9,870	1.2%
Nissan	15,655	16,440	-4.8%	27,858	29,771	-6.4%
Toyota	3,414	3,574	-4.5%	6,159	6,273	-1.8%
Other	1	3	-66.7%	2	4	-50.0%
Total	184,927	186,413	-0.8%	339,095	339,070	0.0%
Data courtesy Japan Mini Vehicles Association

Sales of minivehicles, recorded by the Japan Mini Vehicles Association, were down slightly in February, and are flat for the year. Minivehicles  had seen growth in the past months, even after the subsides expired.

Total vehicle sales Japan February 2013
Manufacturer	Feb ’13	Feb ’12	YoY	YTD ’13	YTD ’12	YoY
Daihatsu	59,924	64,256	-6.7%	106,164	118,249	-10.2%
Hino	3,523	3,094	13.9%	5,842	5,451	7.2%
Honda	66,399	77,155	-13.9%	122,052	141,203	-13.6%
Isuzu	4,417	4,657	-5.2%	7,512	8,101	-7.3%
Lexus	3,647	3,554	2.6%	7,211	6,712	7.4%
Mazda	20,564	19,362	6.2%	38,343	36,847	4.1%
Mitsubishi	13,346	14,530	-8.1%	23,579	26,626	-11.4%
Mitsubishi Fuso	2,602	2,638	-1.4%	4,219	4,646	-9.2%
Nissan	69,583	72,119	-3.5%	125,996	125,100	0.7%
Subaru	15,464	17,178	-10.0%	29,256	31,850	-8.1%
Suzuki	59,237	59,631	-0.7%	109,074	108,330	0.7%
Toyota	138,889	162,451	-14.5%	246,989	289,783	-14.8%
UD Trucks	598	690	-13.3%	1,081	1,246	-13.2%
Other	19,133	18,311	4.5%	33,509	31,406	6.7%
Total	477,326	519,626	-8.1%	860,827	935,550	-8.0%

On a consolidated basis, sales are down, but still not the -25 percent that had been predicted for after the end of the subsidies.

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