Honda hikes prices again in S. Korea on strong yen

SEOUL, March 2 (Yonhap) -- Japan's Honda Motor Co. hiked its vehicle prices by an
average 13.85 percent in South Korea, the second increase this year, hit by a
stronger yen, the company's Korean unit said Monday.

Honda, the third-largest carmaker in Japan, increased the price of all models
sold in South Korea, including the Legend sedan, by 8.9 million won (US$5,701) to
77.4 million won.
The price of the CR-V sport-utility vehicle went up 4.5 million won to 39.9
million won, the company said in a statement. So far this year, the Japanese yen
has jumped 40 percent against the Korean won, according to the company.
"Profitability continues to worsen because of the strong yen," said an official
at Honda Korea. "So, the additional price-hike was unavoidable."
The stronger yen hurts Honda's price competitiveness and squeezes the value of
sales in South Korea.
Last year, Honda was the most popular foreign car brand in South Korea with a
total of 12,356 vehicles sold, followed by Germany's BMW AG and Mercedes-Benz.
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