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Honda management alleges that company is facing problems with euro and labeled its investment an error in Swindon.
Japanese automobiles giant asserted that company invest in UK as they thought that it is a part of Europe. Honda’s President Takeo Fukui shows their apprehension and said
The exchange rate of the pound against the euro is very difficult to forecast. Unless the UK joins the eurozone, we can’t add to plant in Swindon
Honda threatened to close its UK plants. Japanese No three automobiles anxiety over euro is growing disappointment among Japan’s industrialists over the strong pound, now trading at multi-year highs against the dollar, the Swiss franc and other currencies.
Honda’s Swindon plant, which makes company’s flagship model Civic, starts its production in 1992 and since than company is producing at its full capacity, which could not fulfill its growing demand in Europe. Apart from Swinton, Honda has another manufacturing unit in Turkey and now auto giant is thinking to develop it as a major producer in west to meet growing demands for its stuff. Turkey also does not come under the EU, but cheap labour helps company to insulate it against currency risks.
Honda’s growing popularity in the western market has fueled the competition among rival automakers and mounting threat of global warming forced companies to ponder over fuel-efficient products as well as hybrid vehicle.
Honda recently announces its hybrid fuel cell car FCX to combat with increasing threat of global warning.
Image: askaprice
Via: independent.
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