Risk Factors Relating Honda
Risk Factors
Risks Relating to Honda’s Industry
1. Honda may be adversely affected by market conditions
Honda conducts its operations in Japan and throughout the world, including North America, Europe and Asia. A sustained loss of consumer confidence in these markets, which may be caused by continued economic slowdown, recession, changes in consumer preferences, rising fuel prices, financial crisis or other factors could trigger a decline in demand for automobiles, motorcycles and power products that may adversely affect Honda’s results of operations.
2. Prices for products can be volatile
Prices for automobiles, motorcycles and power products in certain markets may experience sharp changes over short periods of time. This volatility is caused by various factors, including fierce competition, which is increasing, short-term fluctuations in demand caused by instability in underlying economic conditions, changes in tariffs, import regulations and other taxes, shortages of certain materials and parts, steep rise in material prices and sales incentives. There can be no assurance that such price volatility will not continue for an extended period of time or that price volatility will not occur in markets that to date have not experienced such volatility.
Overcapacity within the industry has increased and will likely continue to increase if the economic downturn continues in Honda’s major markets, leading, potentially, to further increased price volatility.
Price volatility in any of Honda’s markets could adversely affect Honda’s results of operations.
Risks Relating to Honda’s Business Generally
Currency and Interest Rate Risks
1. Honda’s operations are subject to currency fluctuations
Honda has manufacturing operations throughout the world, including Japan, and exports products and components to various countries.
Honda purchases materials and components and sells its products and components in foreign currencies. Therefore, currency
Risks Relating to Honda’s Industry
1. Honda may be adversely affected by market conditions
Honda conducts its operations in Japan and throughout the world, including North America, Europe and Asia. A sustained loss of consumer confidence in these markets, which may be caused by continued economic slowdown, recession, changes in consumer preferences, rising fuel prices, financial crisis or other factors could trigger a decline in demand for automobiles, motorcycles and power products that may adversely affect Honda’s results of operations.
2. Prices for products can be volatile
Prices for automobiles, motorcycles and power products in certain markets may experience sharp changes over short periods of time. This volatility is caused by various factors, including fierce competition, which is increasing, short-term fluctuations in demand caused by instability in underlying economic conditions, changes in tariffs, import regulations and other taxes, shortages of certain materials and parts, steep rise in material prices and sales incentives. There can be no assurance that such price volatility will not continue for an extended period of time or that price volatility will not occur in markets that to date have not experienced such volatility.
Overcapacity within the industry has increased and will likely continue to increase if the economic downturn continues in Honda’s major markets, leading, potentially, to further increased price volatility.
Price volatility in any of Honda’s markets could adversely affect Honda’s results of operations.
Risks Relating to Honda’s Business Generally
Currency and Interest Rate Risks
1. Honda’s operations are subject to currency fluctuations
Honda has manufacturing operations throughout the world, including Japan, and exports products and components to various countries.
Honda purchases materials and components and sells its products and components in foreign currencies. Therefore, currency