Thursday May 24, 2012

JAPAN NEWS AND DISCUSSION

Honda to build factory in Russia: report

Business Sep. 19, 2011 - 11:26AM JST ( 22 )

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22 Comments

-1

some14someSep. 19, 2011 - 07:53AM JST

will further weaken Japan's stand over russian held islands.. doesn't matter, money first.
1

KonstaSep. 19, 2011 - 07:59AM JST

Makes sense in light of previously reported Mizuho Corporate Bank advancements in Russia. Russia is, of course, fiercely fighting for every inch of its derelict car industry before entering WTO, but it will eventually give up. Here, I can say with honesty: Go Japan!
-2

YuriOtaniSep. 19, 2011 - 08:43AM JST

Yes the Ojis have no respect for our people and nation.
0

KonstaSep. 19, 2011 - 09:18AM JST

Well, maybe then you need to make a referendum, and ask your people: "Should Japan completely stop everything economical with Russia, because it does not want to gave back 4 islands and only gives 2?". Then, it will show you what your nation really thinks, and you'll leave your business in peace, or otherwise you you'll get what you want and show to other countries, how to behave in such situations. Koreans would be definitely interested.
0

shinhiyataSep. 19, 2011 - 09:55AM JST

Toyota had to stop construction on their 2nd Russian factory in 2009 after sales from the 1st failed to reach expected levels. All of the vehicles made at Nissan's brand new St. Petersburg facility - which took 4 years to construct - had to be recalled for brake failure in 2010. The "Mitsubishi" plant in Kaluga is 70% owned by Peugeot and only 15% of the vehicles produced there are branded as Mitsus. And while Mazda has received permission from the Russian government to build a plant, they have not even decided on a location or if the factory will be operated in tandem with another company. Nissan Europe is mostly owned by Renault which has had to cut over 20000 jobs since 2007. I could go on and on, which is something the author should have done instead. The article fails to point out that success for Japanese automobile production in Russia remains elusive.
0

spiddygySep. 19, 2011 - 10:23AM JST

Business comes first, politics lags behind. Business is all about taking risks, you win some, you lose some, but in the long run, you live to accomplish something. Nice start for FDIs. Domestic production has become far much expensive and most business men have lost confidence with the current politicians. who give up a career too soon over emotions. The ones who suffer are the lazy young Japanese kids who don't understand the need to study hard and expand their knowledge globally. Japan is an Island, but people shouldn't think and reason like islanders. They should be more global and less prejudiced , and seek opportunities elsewhere.
-1

The Munya TimesSep. 19, 2011 - 11:05AM JST

So, I few thousands Japanese gonna lose their job again, the Honda factory will operate in Russia using Chinese, Russian and other third party parts and units from Chinese and Russian subcontractors leaving their on Japanese subcontractors partially unemployed .

What does Honda actually do apart from providing design and technologies they achieved by hired designers or just purchased? The name and the profit, that's all but only for a short time until Russians start rolling out their own Russian Honda under Russian brand-name.
-1

Juan RodriguezSep. 19, 2011 - 12:41PM JST

It is all about expansion, sadly, "either you are with us or against us"
-1

Arthur DumbolovSep. 19, 2011 - 01:29PM JST

Like we asked for it... Restore your economy first, only then think about islands.
-1

MrEditSep. 19, 2011 - 06:42PM JST

Honda is betraying its own Japanese people. Taking all the jobs to Foreign country. While the Japanese citizen is suffering. Can't find jobs and economy is getting worst. Thank you honda for contributing to unemployment. Way to go Honda.
0

mikemcfly87Sep. 20, 2011 - 12:55AM JST

Obviously Japan hasn't learned from the U.S. Sending your jobs abroad for a cheap rate hurts and eventually destroys your economy...
-1

PT24881Sep. 20, 2011 - 01:37AM JST

Honda's concerns should put its shareholders' interest on top of its agenda. The domestic market potential & growth should provide the strongest justifications for the investment. When Japanese market stagnates & direct exports are slowing under the unprecedentedly high yen against foreign currencies, I am afraid workable options become limited or else will lose out to others anyway !
0

motytrahSep. 20, 2011 - 02:11AM JST

Russians are starting to get money, but it's very difficult to operate in Russia. A lot of western companies got burned in the 90s and 2000s trying to produce things there. Things are just so corrupt. One company I worked for would send expensive materials and equipment to the factory, but when they opened the crates half of them would be filled with rocks. They eventually cut there losses and moved operations to Eastern Europe and never looked back.
0

BessonovYanSep. 20, 2011 - 03:50AM JST

@The Munya TimesSep. 19, 2011 - 11:05AM JST

Now Chinese companies sell Japanese clone car in Russia. Honda would build factory near Japan. If I right understand it doing for concurensy with Chinese companies and more stable finance also more defence from tsunami. Of course Honda R&D, make components in Japan and build cars in Russia. That is jobs for Japan and more stable Honda company.

First car factory was build GM with AutoVAZ some years ago. Japanese companies are going as lasted.
1

The Munya TimesSep. 20, 2011 - 10:36AM JST

BessonovYanSep. 20, 2011 - 03:50AM JST

Oh please, don't be a child.
1

Jeffrey DuelleySep. 21, 2011 - 12:04AM JST

How the hell is Honda sending jobs overseas? They're opening a new factory, not closing Japanese factories. Are you people just plain stupid?
0

BessonovYanSep. 21, 2011 - 04:04AM JST

@The Munya TimesSep. 20, 2011 - 10:36AM JST

Whats problem? Strong yen. Honda worried about jobs in Japan. Are need stop Honda factory in Japan?
-1

mikemcfly87Sep. 22, 2011 - 03:19AM JST

Jeffrey Duelley - Opening a plant in another country when yours is completely able, constitutes sending your potential local workers jobs overseas... Is too that complicated?
0

Jeffrey DuelleySep. 22, 2011 - 05:38AM JST

No, a company expanding is not sending jobs overseas. What strange thinking you people have. Japan still has plenty of factories that are still operating and has low unemployment (4.9%) compared to America's real unemployment of 22.3%. 51% of US income now comes from government social programs. Like I keep saying, Japan is fine, worry about Europe and the US.
0

mikemcfly87Sep. 24, 2011 - 03:22AM JST

Japan only has 5 Honda factories... They have 23 overseas... you don't see a discrepancy in that? At least toyota and Nissan have double digit numbers for domestic factories. A company expanding is not a bad thing, A company expanding without first expanding domestically is...
0

Jeffrey DuelleySep. 24, 2011 - 08:33AM JST

How many Honda plants are in each country? "Overseas" isn't one place. How large is each factory?

What do you expect companies to do with the Yen exchange rate as it is? It would be great if there were more factories being built in Japan, but you can't force a company to lose money.
0

mikemcfly87Sep. 27, 2011 - 11:14PM JST

Your right it is about the money, which is sad to an extent. But to answer your question, there are 3 plants in the US, 2 in China, and a total of 18 in several other countries such as: Pakistan, Canada, UK, Belgium, 2 in Brazil, 2 in Indonesia, India, Thailand, Turkey, 2 in Argentina, and Mexico. Just as I said, Honda isn't learning from US mistakes. GM comes to mind. Where they did the exact same thing. Where the company was failing and they then tried to build 7 new factories in the US after 2000. GM had 44 plants in the US with 43 overseas. This ratio is clearly better than the 5:23 of Honda, but GM still failed... And that lead to several large banks "bailing" them out, then they called for bankruptcy, whhich in turn lead to the US Government bailing them out, which then lead to the US defaulting and here we are... All that the giant companies want is more money... NOT the well being of the locals of the country that bear their originality. GM has now realized that, and is making more of an effort to help by bringing jobs back to the country to help bolster the economy. Hint hint, Honda is not learning from fellow corporations...