Honda sees declining profits on semiconductor crunch

Another day, another China related 'crunch'. I honestly don't know why it's so hard for Japanese corporations to wean themselves off of the China supply chain.

I honestly don't know why it's so hard for Japanese corporations to wean themselves off of the China supply chain.

Do you how long it takes to move production back to Japan? Do you how long it takes to build a factory? Building a factory and creating a new supply chain isn't the same a posting a comment on the JT website. It takes time and money.

If the profits of Honda Motor Company are reduced by 33% by a mere chip shortage, imagine what will happen to profits if Taiwan is invaded and the supply of semiconductors is all but stopped...!

Honda is buying badge-engineered EVs from GM for resale as Hondas.

Honda Prologue is a rebadged Chevy Blazer EV.

Acura Precision is a rebadged Cadillac Lyriq.

https://www.motorauthority.com/news/1136620_2024-honda-prologue-spy-shots

The Prologue is an electric SUV first announced in 2021 and designed around General Motors' Ultium platform. It's due on sale as a 2024 model, meaning we'll likely see it start sales next year.

*GM is handling development and will also be responsible for production** which is expected to take place at the automaker's plant in Ramos Arizpe, Mexico. The plant is where the Chevrolet Blazer and Equinox are built, and it's where upcoming electric versions of the two GM models will also be built.*

The recently revealed 2024 Chevy Blazer EV is a good indication of the size and shape of the Prologue. A comparison of the Prologue prototype with the Blazer EV reveals similarities like the side windows stretching from the A-pillar right up to the C-pillar. The position of the side mirrors and door handles is also a match.

NO WORRIES, Honda make one of the best Automobiles in the world, and when your are that good you will always rebound.

Solution is obvious: Make more semiconductors in Japan.

BUT also beef up your cyber-security to prevent ccp cyber-lapdogs from stealing the data.

I honestly don't know why it's so hard for Japanese corporations to wean themselves off of the China supply chain.

Because they bought into the neo-lib globalization narrative claiming that outsourcing can only be good and that China would come into the liberal democratic fold as it got more prosperous. Hilarious, I know, but a lot of powerful people actually believed that.

Do you how long it takes to move production back to Japan?

A few months per facility. Around half of all Japanese cars are being made in Japan anyway. The infrastructure, expertise, regulatory environment, etc are already here. Just a matter of expanding and tweaking current operations and structures.