New York Times: China-made Honda Fit for the first time exported to the North American market

According to the “New York Times” report, Honda Motor Co., Ltd. is preparing to export the Fit models produced by the Guangzhou plant in China to the Canadian market. This is also the first time that the Chinese-made Honda Fit has entered the North American market.

The New York Times stated that due to the continuous appreciation of the yen, Honda Motors began to consider relocating the distribution of global vehicles. Although no details were disclosed, the media pointed out that the Fit models manufactured by Honda China have already begun exporting to the Canadian market.

Honda's export of Chinese-made vehicles is part of its strategy to increase its overseas production capacity. Jerry Chenkin, vice president of Honda Canada, pointed out: "The stronger Japanese Yen is becoming increasingly fierce." The domestic production of the Fit in Japan is exported to the Canadian market, and profits are basically offset by tariffs as high as 6.1%. The provision of vehicles in the low-cost Chinese market can maintain a certain level of profitability in low-margin areas.

In addition, the image of the "Made in China" vehicle has improved globally, which also laid the foundation for its overseas market. Chenkin said: “We are very confident that these (Made in China) vehicles can fully meet the Honda standard.” Honda Canada previously imported some of its power generators from the Chinese factory without any complaints or boycotts from consumers.

Until recent years, Honda's exports to Canada have been produced in Japan. However, Honda has exported China Fitbuilding to other markets for five years, covering 27 countries, mainly sold in the European market under the name of Jazz, but has not previously penetrated the North American market. However, Honda explained that the Fit to China produced at the time of exporting to the European market was not due to the strengthening of the yen, but to the purpose of maximizing production capacity.

Currently, Honda is embarking on a reduction of domestic production capacity in Japan and shifting production capacity to overseas factories. The company plans to reduce the proportion of domestic production capacity facing the export market, from the current 30%-40% to 10-20% in the next 10 years. The proportion of global factory exports can reach the same 10% -20% level.