Honda Takes Calculated Global Risk

Detroit Free Press - October 7, 2012

In an ambi­tious and risky expan­sion, Hon­da will near­ly dou­ble glob­al car sales to 6 mil­lion a year by 2017. His­tor­i­cal­ly, expan­sion pro­gram plans are rife with cau­tion­ary tales.

What is involved, and what could go wrong?

“That’s a huge jump in a short time,” said Edmunds.com senior ana­lyst Michelle Krebs. “The com­pe­ti­tion is tough.”

“This is very, very dif­fi­cult,” said Jim Hall, man­ag­ing direc­tor of 2953 Ana­lyt­ics. “They’ll have to (expand) in new mar­kets, and that can be very expen­sive.” Hon­da hopes about half the 6 mil­lion sales will be in its tra­di­tion­al U.S., Japan­ese and Euro­pean mar­kets. It’s tar­get­ing devel­op­ing mar­kets like India and Chi­na for the remain­der.

Read more to find out what chal­lenges lay ahead.

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