Honda Announces Global Expansion
20th July, 2007
Honda Motor Co's President and CEO, Takeo Fukui, has announced plans for new factories and a boost in production to meet Honda's global demand.
Mr Fukui made the announcements in his customary mid-year speech, saying Honda had carried out plans to strengthen the foundation of growth and advancement on a global scale and the development of advanced technologies and products.
Honda is building a second car plant in Thailand to meet demand around the Asia-Oceania region - including Australia - by doubling production in the country. The 6.2 billion baht (approx AUD$227 million) factory will be completed by the end of next year with an annual production capacity of 120,000 vehicles.
In April this year an engine parts plant opened and in late 2007 a Honda subsidiary producing stamped body panel service parts will begin operation.
Honda's Japanese production facilities will be strengthened with a new R&D centre in Tochigi to be completed by 2009, along with a new car production plant in Yorii set to open in 2010. A new engine plant will open in Ogawa in 2009.
Honda's annual motor vehicle production in India will hit 150,000 by the end of 2010 with a new, US$230 million motor vehicle plant opening at the end of 2009. The new plant, which will produce 60,000 vehicles annually, will be joined by a doubling of production at the current plant to 100,000 vehicles.
A new motor vehicle factory in the United States, along with a new engine factory in Canada and increased production in Mexico will push Honda's vehicle production in North America to 1.62 million by the third quarter of 2008.
The extra capacity will be used to meet North American demand which is growing thanks to sales of the CR-V, Fit (Jazz) and Civic.
Honda is boosting production in South America with a new, US$100 million, 30,000 capacity, car plant in Argentina coupled with an increase in production at the Brazil motor vehicle plant to 100,000 vehicles.
Honda's two factories in China are now producing 530,000 cars annually for domestic consumption and export to Europe. Honda's Chinese joint-venture company, Guangzhou Honda Automobile, will establish a 30 billion yen motor vehicle research and development subsidiary, including a full-scale facility with a test course. The new company will develop a product to be marketed under an original brand of Guangzhou Honda starting in 2010.
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