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 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.