Honda looks to silence critics with new Accord

Business Aug. 21, 2012 - 06:13AM JST ( 3 )

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3 Comments

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papasmurfinjapanAug. 21, 2012 - 01:48PM JST

So why does the Accord, a Japanese car made in Saitama cost 8 thousand dollars more for the same car made in the USA?
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JohnBeckerAug. 22, 2012 - 01:15AM JST

So why does the Accord, a Japanese car made in Saitama cost 8 thousand dollars more for the same car made in the USA?

Maybe they're paying more for labor in the U.S. Maybe property taxes and utility bills for the U.S. factory are higher. Maybe there are convenience and safety features installed in the American version that aren't in the Japanese version.

Maybe Honda believes Americans are willing to pay $8,000 more.
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papasmurfinjapanAug. 22, 2012 - 10:36AM JST

@ JohnBecker

You misinterpreted my poorly written post. : )

The Accord costs $21,480 in the US.

The base grade of the same car in Japan costs roughly $30,000 (granted the exchange rate helps). For $21,480 all you will get is the base model Toyota Corolla announced yesterday.

Sure, the US Accord is made in the USA, the Japanese version in Japan, but the specs are similar (if anything, the US version has better specs than the Japanese version, for a cheaper price). Either it is a hell of a lot cheaper to manufacture a car in the USA than Japan, or Japanese consumers are being ripped off. The same goes for Toyota's Camry, Subaru's Legacy, practically any car sold both in Japan and the USA - it is much cheaper to purchase in the US than Japan.

As with Japanese electronics, which are often cheaper overseas, I suspect that car prices in Japan are inflated due to lack of competition from other car manufacturers - no Hyundais, very few GMs or Fords etc. Basically, consumers in Japan are being ripped off due to Japan's protectionism of its auto industry.