Honda CFO Yoichi Hojo stated he doesn't see vehicle exports from Japan 'falling' anytime in the near future, despite rumors to the fact, and that the yen is at a 15-year high against the American dollar.

"Our export models are the CR-V and hybrids, but the CR-V is selling well in the US and production of the model is at full capacity (in the US), so we have no choice but to export from Japan," Hojo said.

As production volume of hybrid vehicles is not very big (around 200,000 hybrids annually) it is more efficient to produce them at a Japanese plant, added Hojo. Honda hopes to produce 72,000 CR-V vehicles in Japan, half of those are headed for the US market.

Japanese auto makers have geared up to build vehicles overseas in order to combat the threat of the yen's appreciation, and to provide vehicles at a lower cost to local markets.

But it is tough to respond quickly to the currency's sudden strength as it takes months to lay out facilities needed to increase output at overseas factories.

Hojo added one way Honda is working on measures to cope with the strong yen is by using lower-cost parts made in China, India or other overseas countries.

[SOURCE] http://online.wsj.com/article/BT-CO-20110201-720554.html