Honda Renews Commitment to U.S. Auto Industry

Washington DC May 27, 2005; AIADA reported in their newsletter that Honda President and CEO Takeo Fukui said Thursday his company will continue to keep U.S. production levels high and purchase more parts from suppliers located in the country rather than raise prices on Japanese vehicles, reports the Associated Press.

Japanese automakers have been considering ways to help the U.S. auto industry as General Motors Corp. and Ford Motor Co. watch their U.S. profits sharply decline. During a news conference celebrating the launch of Honda’s new Step Wagon minivan Fukui said that raising prices on vehicles is a “hard” suggestion for “us to understand.” According to Fukui, nearly 80 percent of the vehicles Honda produces for the American market are made in the U.S. with up to 98 percent of auto parts sourced from local suppliers.