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    Noguchi's questions to Honda Motor Co Ltd (HMC) leadership

    Noguchi's questions to Honda Motor Co Ltd (HMC) leadership • Q1 2025

    Question

    An analyst identified as Mr. Noguchi asked about Honda's strategy for managing significant foreign exchange volatility, particularly the JPY/USD rate, and inquired about the operational response to the challenging market conditions and capacity reductions in China.

    Answer

    Executive Eiji Fujimura explained that while the JPY 140/USD forecast is maintained, the company is prepared for volatility through its principle of local production for local demand, which builds currency resilience. Regarding China, he detailed plans to reduce production capacity to approximately 1.2 million units, acknowledging the shrinking internal combustion engine (ICE) market and intense price competition.

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    Noguchi's questions to Honda Motor Co Ltd (HMC) leadership • Q1 2025

    Question

    An analyst identified as Noguchi asked about Honda's perspective on the significant foreign exchange volatility, particularly the yen's weakness against the dollar, and its potential impact on the business and stock price, given the company's JPY 140 assumption.

    Answer

    Executive Eiji Fujimura acknowledged the dramatic currency fluctuations, noting the JPY 140 assumption now seems less conservative. He reiterated Honda's core principle of producing where demand exists to build natural currency resilience. While confident in Honda's robust business structure to withstand volatility, he admitted that a JPY 20 swing in a single month is a tough situation. He also mentioned monitoring the finance business for risks like bad debt but believes the company is well-prepared.

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