Honda (NYSE: HMC), which has been dogged by the value of the yen and loss of production due to the March earthquake will move more production to North America, one of its largest markets, according to The Wall Street Journal.
Much of the new capacity is set for a new plant in Mexico.
Honda car and light truck sales in the US, its largest market, have fallen due to lack of investory because of supply interruptions. Honda relies on the American market for much of its sales.
The Journal points out the Nissan and Hyundai, along with its Kia brand, have pressured sales. The same is true of resurgent Chrysler, now owned by Fiat, and GM (NYSE: GM) which has surged out of Chapter 11.
Honda also does not have a major presence in China which is now the world’s largest car market with sales of over 16 million cars and light truck sales per year.