HONDA STOPS MOTORCYCLE PRODUCTION IN USA
July 29 2009.

Today's Nikkei Morning Edition in Japan reports that Honda wound down its U.S. motorcycle production early this month due to declining demand in the U.S. market, ending 30 years of production.

The company was a forerunner among Japanese firms in making motorcycles in North America, having launched U.S. production in 1979. Its plant in Ohio had an annual output capacity of about 70,000 units. 

The American motorcycle market shrank to 1.32 million units in 2008, down almost 30% from a recent peak of 1.79 million units in 2005. Honda concluded that the advantages of local production have faded and decided to export products from Japan to the U.S. market instead.

Honda is increasing production in regions where demand is growing, mainly in Asia.


Source: The Nikkei