| It is inevitable for the businesses to experience | | | | But Honda is not the only manufacturer that criticized |
| fluctuations in terms of profits, shares, revenues or | | | | Britain's decision of not introducing the euro. Nissan |
| sales. It is because of the fact that not all the | | | | also objected. |
| factors in the industry are controlled by the | | | | It is impossible to expand the production in Honda's |
| corporations. External factors such as the forces of | | | | plant in Swindon because there is no room for |
| the market greatly affect such fluctuations. | | | | expansion for the time being. But there is room in |
| Consequently, overriding problems occur. And these | | | | Turkey, where Honda is at present expanding a plant. |
| things are experienced even by huge companies in | | | | The plant is growing even though the euro is not the |
| the most highly developed countries. | | | | official currency there either. This is for the reason |
| Take the second biggest car maker in Japan as an | | | | that production costs in Turkey are lower. |
| example. Even though Honda's foreign sales rose 11 | | | | Other than the problems in Britain, Honda has also |
| percent, those in Japan dropped 3.4 percent. In | | | | been blown by the tough competition from the |
| effect, the company expects this year's profit to be | | | | domestic manufacturers in Japan. BBC reports that |
| down by 3 percent. Things are not as good as they | | | | sources at the plant reveal that the plant's annual |
| seem for the Japanese automaker even though | | | | profit declined five percent after the sales in Japan |
| Honda won the title of the most reliable car in Great | | | | had dropped and also after the production costs had |
| Britain in Which? Magazine. | | | | risen. |
| The production in Great Britain is made difficult by | | | | Having such circumstance, Honda expects this year's |
| certain factors such as the domestic currency, high | | | | final profit to drop three percent. |
| production costs and the impossibility of expanding | | | | Japan's second biggest automobile manufacturer said |
| the plant. | | | | that aside form the dropping sales in Japan and the |
| Takeo Fukui, the president of Honda Motor, said to | | | | costs of research the factor that caused the decline |
| BBC that they made a mistake and that resisting the | | | | in profit is also the poor exchange rate of the yen. |
| euro is a big problem in Britain. | | | | |