Honda Outsources Parts to Keep Remodeld Fit’s Price Down

Honda Motor Co. showed off its new redesigned FIT subcompact which it will sell for around the same price because more of its parts were bought from overseas.

The FIT makes up about 10% of Honda's global sales.

It has not been overhauled since 2001.

The car will be released next week, Oct. 26th and will go for Y1.19 – Y1.78 ($10,000 and up).

Overseas parts make up about 17% of the costs, about 5% more than the first model and consist of small and relatively expensive parts with lower transport costs:

1. air bags,

2. measuring instruments,

3. audio equipment

4. air conditioners.

The FIT is manufactured in four countries, China and Thailand, with 80-90% of the parts for those cars procured locally.

The 2G Fit has better power and transmission but still gets 24 km/l = 57mphish.

Honda wants to sell 12,000 units each month in Japan and will release the car to Europe, the U.S. and China within one year.

Would you like to have a car that can get 57 mph?