Why not? The price of everything else is going up.
Honda May Boost U.S. Car Prices as Steel Costs Rise (Update1)(Bloomberg) -- Honda Motor Co., Japan's second- largest automaker, may increase prices for its vehicles in North America and other markets to offset higher steel and other raw materials costs.
``We will definitely consider it,'' Yoichi Hojo, chief operating officer of Honda's business management operations, said in an interview on May 12 in Tokyo. ``It may be difficult to raise prices right away in Japan and North America, as market conditions are tough.''
Honda's North American headquarters is in Torrance.
Honda, which gets about 70 percent of its operating profit from North America, may follow Toyota Motor Corp. and Nissan Motor Co. in boosting prices in the region. Honda expects a 32 percent drop in operating profit this fiscal year as raw materials prices and a stronger yen erode earnings.
``The global automakers have to tackle some negative situations,'' Hirofumi Yokoi, an analyst at CSM Worldwide, said in an interview with Bloomberg Television yesterday in Tokyo. ``They have to consider all the things to achieve their goals.''
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