Honda is planning to increase its output of lawnmower engines. In January 2020, it will transfer production from Japan to the U.S. and increase the U.S. factory’s output capacity 1.5 fold to 1.5 million units a year. It will also increase output in China by nearly 20% for shipment to Europe. Since demand for home construction is brisk in the U.S., the largest market for lawnmower engines, demand for lawnmowers is also high.
Honda will make a 46-million-dollar investment (5 billion yen) to expand the existing facility in North Carolina to increase output of new general-purpose small engines to be used in lawnmowers produced by other firms as well. It will transfer its Kumamoto production equipment (Oozu Town, Kumamoto Prefecture), for which 60% of the production processes are automated, to the U.S. factory. (Abridged)