North America may not be alone in feeling the pinch of higher prices, either. Speaking during an interview in Tokyo Honda Chief Operating Officer Yoichi Hojo said that prices in Japan and North America may have to rise, though doing so would make it even harder to make sales targets in the softening market, according to Steelguru. The rising raw materials costs are primarily centered around a jump in the price of steel, though other materials are contributing factors.
Honda's North American operations are central to its corporate structure, with nearly 70% of its operating profit originating on the continent. Despite the move to raise prices, the slackening sales means Honda is predicting a 32%, or ¥75 billion, drop in profits for the coming year.
Toyota's recent price rises averaged just under 2% for the Prius and Yaris, and though Honda hasn't yet disclosed what range of price increases it is contemplating, it would make sense for it to make similar adjustments since roughly the same materials prices and market forces apply to both car makers. A GM executive also recently opined on the subject, noting that another driving force of the increased costs are the stricter CAFE standards within the U.S.