Honda Takes Calculated Global Risk

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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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