agent Entrepreneur logo
MenuMENU
SearchSEARCH

Honda Will Go it Alone As it Seeks Asian Growth

March 23, 2010
2 min to read


TOKYO - Honda Motor Co. will steer clear of cooperating with rival automakers as it seeks to boost its presence in Asia, defying a resurgent trend towards tie-ups in the industry, a top executive told Reuters. Automakers from Volkswagen AG and Suzuki Motor Corp. to Renault-Nissan and Daimler AG are exploring ways to share vehicle underpinnings and components to lower R&D spending as competition intensifies with the spread of cheaper and more fuel-efficient cars. But Fumihiko Ike, head of Honda's Asia & Oceania operations, said Japan's No.2 carmaker would shun such partnerships after its past experience with a short-lived capital tie-up with Britain's Rover in the 1990s and an engine supply deal with General Motors Co. in the past decade. "Pursuing bigger volumes is certainly one way of lowering costs," he told reporters on Tuesday. "But in reality making cars isn't that simple. It's very difficult for two companies to work together towards a common goal. On paper you might end up with the volumes, but in other ways you get huge inefficiencies," he said. Ike, formerly Honda's chief financial officer, said working speedily alone could be more beneficial than gaining economies of scale through a tie-up. Developing key technologies in-house was expensive but also desirable, he said, as it enables carmakers to work in conjunction with suppliers to lower parts costs. "The key now is figuring out how to efficiently develop and produce cars. And if the company becomes too big, efficiencies will also fall," he said. Ike's comments came as Nissan was reportedly in talks with Daimler to procure large engines from the maker of Mercedes-Benz cars, and to supply the German automaker with electric cars and batteries. Nissan already has a comprehensive tie-up with Renault, and the two are seeking deeper synergies after a decade together, most recently saying they would share Nissan's "V" platform on which the all-new Micra/March entry-level car is built. Such low-end cars are seen as key to competing especially in emerging markets such as India, where tiny cars make up more than two-thirds of sales.

More Industry

F&Iby Lauren LawrenceFebruary 27, 2026

Price Driving Insurance Churn

Over half of insurance holders ages 18 to 29 reported to be 'somewhat' likely to change providers in the next 90 days, according to CivicScience, which found that interest was lower among older age groups.

Read More →
Industryby Lauren LawrenceFebruary 26, 2026

AI Drives Dealer Website Traffic

Total visits to dealer websites from generative artificial intelligence platforms grew more than 15 times year-over-year, signaling a shift in how many consumers shop for cars online.

Read More →
Industryby Hannah MitchellFebruary 26, 2026

Automakers Tops in Fuel Economy

In the U.S., Honda has the most efficient gas-electrified combo lineup while Tesla beats all automakers in annual EPA ranking as brands built their alternative-fuel offerings.

Read More →
Ad Loading...
F&Iby Lauren LawrenceFebruary 25, 2026

Report Finds Year-End F&I Strength

Deal volume ebbed and flowed throughout 2025, but product performance remained steady, according to automotive technology and data intelligence solutions provider StoneEagle.

Read More →
Industryby Hannah MitchellFebruary 24, 2026

Overall Consumer Confidence Up

Americans’ view of present business conditions, the labor market and family finances, though, are still in the dumps, and if they plan to buy cars, many target used units.

Read More →
Auto Financeby Lauren LawrenceFebruary 23, 2026

Auto Loan Forecast Bucks Market Trend

Auto loan originations rose over 6% year-over-year in the third quarter of 2025, but TransUnion predicts a slight decline in auto loan growth this year, making it an outlier in the company's overall lending forecast.

Read More →
Ad Loading...
F&Iby Hannah MitchellFebruary 23, 2026

Some Auto Brands Cheaper to Insure

A new top 10 list ranks the least expensive for average full insurance coverage on a clean driving record and high driver credit scores.

Read More →
Industryby StaffFebruary 20, 2026

Learn to Manage the Mayhem at Agent Summit

Rob Mancuso – president of Mancuso Automotive – will present a Keynote at the 2026 event.

Read More →
Fixed Opsby Hannah MitchellFebruary 20, 2026

Auto Recalls Sank Last Year

2025 Sedgwick data indicate that the number of vehicles affected fell to its lowest point in more than a decade.

Read More →
Ad Loading...
Industryby Lauren LawrenceFebruary 19, 2026

Affordability Leads Top-Rated List

Edmunds’ editorial team tested 300-plus vehicles to help determine the Top Rated Awards for 2026, and one brand stood out with multiple rankings, including Best of the Best.

Read More →