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Corporate July
10, 2002 |
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| Honda to Begin Local Production in Taiwan |
Tokyo, July 10, 2002 --- Honda
Motor Co., Ltd., has announced that Honda Taiwan Co., Ltd., its local subsidiary,
will begin production of automobiles by the end of this year, with plans
to begin sales of automobiles in January 2003, through a new dealership
network currently being established.
Honda Taiwan will start production with the new CR-V, which is enjoying
robust sales in North America, the ASEAN region as well as in Europe. Current
plans call for the production of additional vehicles in the future. Total
investment in this new operation is expected to reach 3.4 billion yuan (approximately
12.2 billion yen or U.S.$101 million) with employment of 500 associates.
Production volume during the first year will total approximately 20,000
units. Honda's flexible New Manufacturing System will be introduced in this
new facility making it possible to swiftly shift production from one model
to another depending upon customer demand, with only marginal additional
investment. The low cost and efficiency of this flexible system will enable
production of high-quality vehicles at highly competitive prices.
Honda Taiwan will also import automobiles from Japan to broaden its product
lineup, and the sales network will be expanded to 70 dealerships in 2004,
with a yearly sales target of 35,000 units.
Honda established Honda Taiwan as a 100% owned local subsidiary in February
2002, after discontinuing its local partnership, in order to create an organizational
structure that would enable it to fully utilize its global production and
supply networks. Following this development, in June, Honda purchased land
and a factory from local automobile manufacturer, Taching Motors Co., Ltd.,
located in the south of Taiwan. As part of the initial investment, additional
production equipment will be installed in the facility by the end of this
year to ramp up for the start of production.
Outline of Honda Taiwan Co., Ltd.
| Established |
: |
February 2002 |
| Capital |
: |
Approx. 3.6 billion yuan (approx. 13.0 billion yen) |
| Capitalization ratio |
: |
Honda Motor Co., Ltd. 100% |
| Representative |
: |
Teruo Fujisaki, President |
| Business activities |
: |
Automobile production and sales |
Outline of newly established production facility
| Location |
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Pingdong, Pingdong Prefecture |
| |
: |
roughly 15 km northeast of downtown Gaoxiong |
| Site area |
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188,000m2 (Building area: 65,000m2) |
| Investment |
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Approx. 3.4 billion yuan (approx. 12.2 billion yen) |
| Products manufactured |
: |
CR-V |
| Manufacturing processes |
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Welding, painting, body assembly, vehicle inspection |
| Employment |
: |
Approx. 500 associates |
| Production start-up |
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December 2002 |
| Production volume |
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20,000 units (in 2003) |
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