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Corporate November
5, 2001 |
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| Honda Establishes Korean Subsidiary for Motorcycle Sales
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Tokyo, November
5, 2001 --- Honda Motor Co., Ltd. today announced that it has established
Honda Motorcycle Korea Co., Ltd., a subsidiary for motorcycle wholesale
and retail sales in Korea.
The new company, based in Seoul, will begin operations early next year by
establishing a flagship store in Seoul. In 2003 the company will set up
a dealer network covering major regions in Korea to begin wholesale sales.
They will sell Honda brand motorcycles and offer high-quality after-sales
services and a reliable supply of spare components and parts to assure customer
satisfaction.
The new subsidiary has been established based on recent market trends. The
motorcycle market in Korea has been dominated by small motorcycles with
a displacement of less than 125cc that are used mostly for personal transportation
and commercial purposes. Annual sales were a stable 300,000 units before
a serious recession hit the economy in 1998. Last year, annual sales totaled
160,000 units, but sales of larger-displacement motorcycles are increasing,
totaling 4,829 units in 2000, a 254% increase from the previous year.
In view of this trend, including demand for greater diversification of motorcycles
focusing on more recreational appeal and for improved after-sales services,
Honda decided to establish its new subsidiary.
Honda's business in Korea began with technical collaboration with Daelim
Motor Co., Ltd. in 1981 to produce and sell motorcycles. It recorded sales
of 120,000 units in 2000, becoming the top motorcycle brand in the country.
After the inauguration of the new subsidiary, Honda will continue production
and sales of small motorcycles at Daelim under its technical collaboration
agreement. Honda also has plans to enter the large motorcycle business for
motorcycles with a displacement of over 125cc through the new subsidiary,
thus extending the popularity of the Honda Brand.
Corporate Information
| Company name |
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Honda Motorcycle Korea Co., Ltd. |
| Representatives |
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Chairman: Satoshi Toshida
President: Woo-Young Chang |
| Headquarters |
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Seoul |
| Capital |
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3,000,000,000 won (JPY300,000,000) |
| Capital investment |
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Honda Motor Co., Ltd. ---- 95%
Woo-Young Chang --------- 5% |
| Number of employees |
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7 (initial) |
| Major business activities |
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Wholesale, retail sales, and after-sales service of motorcycles |
| Sales target |
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250 units for 2002 |
| Foundation |
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October 29, 2001 |
| Estimated start of business |
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January 2002 |
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