Why Honda doesn't need a bailout

posted 11/25/2008 13:51:52 by matt flesch-kincaid: 38, grade level: 11 commentscomments(0) linklink
Ford, GM and Chrysler are losing money out the nose, while Honda ships empty containers back to Japan. Both losing propositions, so what's the response? United Auto Workers (UAW) has the "big 3" paying ~10,000 auto workers not to work. Honda creates a company to ship soybeans to Japan to make tofu using it's formerly empty containers.
Of all the bizarre subsidiaries that big companies can find themselves with, Harmony Agricultural Products, founded and owned by Honda Motor, is one of the strangest. This small company near Marysville, Ohio produces soybeans for tofu. Soybeans? Honda couldn't brook the sight of the shipping containers that brought parts from Japan to its nearby auto factories returning empty. So Harmony now ships 33,000 pounds of soybeans to Japan. An inveterate tinkerer, Honda also set up a center nearby to develop better soybean varieties and improve agricultural processes.
No wonder the government has to bail out the automakers, there's no way that any American company could come up with an idea like that.


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