|Accord Production Line-Off Ceremony Held in China|
|Guangzhou, China, March 26, 1999 --- Honda Motor Co., Ltd. (HMC) today announced that its two joint venture companies in China, Guangzhou Honda Automobile Co., Ltd. (GHAC) and Dongfeng Honda Engine Co., Ltd. (DHEC), held a line-off ceremony of the locally built Accord sedan model.
The ceremony was attended by several hundred guests, including Chinese officials led by Mr. Li Changchun, Political Member of the Communist Party of China Central Committee, and Mr. Zhu Senlin, Chairman of the Standing Committee of the Guangdong Provincial People's Congress, plus other dignitaries from the central, provincial and city governments.
Representing Honda's partner companies were Mr. Zhang Fangyou, Chairman of Guangzhou Auto Group Corp., and Mr. Ma Yao, President of Dongfeng Motor Corp. HMC was represented by Chairman Yoshihide Munekuni, President Hiroyuki Yoshino and other company officials.
The Chinese production ventures were founded in July 1998 to manufacture Honda passenger cars and engines.
The model GHAC produces is the same wide-bodied type Accord sedan that is being manufactured and sold in the United States. A total of 10,000 units are scheduled for production in Guangzhou in 1999, with an expected increase to 30,000 units in 2001.
Initially parts and components will be sourced from Japan, the United States, Thailand and Malaysia but this October, local parts procurement is scheduled to reach 40%, as prescribed in China's industrial policy for its motor industry. This ratio is expected to increase in coming years.
All Accords built by GHAC will be sold through Honda's exclusive dealer network, currently under development. GHAC plans to have 60 dealers in place by the end of the year, increasing to 100 next year.
Guangzhou Honda Automobile Co., Ltd.
Overview of the new team structure:
Dongfeng Honda Engine Co., Ltd.