Japan's Honda Motor Co. Ltd. says it expects worldwide motorcycle sales of 12.5 million units in 2005. Official sales figures have not been released, but the company says its 2004 worldwide sales forecast for its motorcycle business was 10.7 million units, up 23% from 2003.
In a year-end statement released recently by the company, Takeo Fukui, president and CEO, Honda Motor Co., Ltd., said the escalating price of crude oil and sudden fluctuations in currency exchange rates were major factors in the past year's global business environment.
Fukui said a main part of Honda's plan for the future is to develop a corporate structure to buffer the company from exchange rate fluctuations and other changes in the business climate “by increasing the self-sufficiency and autonomy of each regional operation and by improving quality, cost and delivery in our parts sourcing efforts.”
Regarding the United States, Fukui said ATV production in North America will be consolidated at the South Carolina plant, while production of models such as the TRX450R will be transferred from Ohio to the Kumamoto plant in Japan, in order to further strengthen Japan's function as the global hub in supporting expansion of overseas operations.
Copyright 2005 Powersports Business