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Corporate December
18 , 2002 |
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| Honda Increases Automobile Production Capacity in China |
Tokyo,
December 18, 2002 --- Guangzhou Honda Automobile Co., Ltd., Honda's automobile
production and sales joint venture
in China, will increase its yearly production capacity to 240,000 units by spring
2004. Guangzhou Honda is currently in the process of increasing capacity from
50,000 to 120,000 units a year by February 2003. The latest capacity increase
was deemed necessary in response to the continuing expansion of the Chinese passenger
car market.
The new expansion project includes additional investment of approximately 660
million yuan (¥10 billion) to expand the facilities, including the assembly plant
building and additional sub-assembly lines. Guangzhou Honda expects plant employment
to increase from 2,400 to 3,400 associates by spring 2004.
After the expansion is complete, the production line at Guangzhou Honda will incorporate
Honda's "New Manufacturing System" to become a mass production operation with
a high level of efficiency and flexibility equivalent to other Honda production
bases in Japan, North America and Europe. The New Manufacturing System improvements
include more flexible welding equipment, functional process zones on the main
assembly line with quality assurance within each zone, a standardized main assembly
line with sub-lines absorbing processes that fall outside common assembly parameters,
and an enhanced workplace environment.
As Guangzhou Honda plans to launch the all-new Accord in January 2003 and the
Fit Saloon (sold as the Fit Aria in Japan), the third production model to go into
production in summer 2003, the company will make full use of the increased production
capacity to respond to the ever-diversifying needs of the Chinese market. Guangzhou
Honda began building the Odyssey minivan in spring 2002.
The production and sales of Guangzhou Honda have been increasing at a faster pace
than initially anticipated since production began in March 1999. Production results
for 2002 are expected to reach 59,000 units, with cumulative production through
the end of 2002 expected to exceed 152,000 units, and production for 2003 forecast
at 112,000 units.
In addition, Guangzhou Honda will increase the number of dealers from approximately
130 to 200 by the end of 2003. This is the first sales and service dealer network
in China to be developed by a manufacturer, integrating auto sales and service
into one organization, including maintenance service, parts supply and communication
with customers.
Current Outline of Guangzhou Honda Automobile Co., Ltd.
| Established |
: |
July 1998 |
| Capital Investment |
: |
Approx. 1.15 billion yuan |
| Capitalization Ratio |
: |
Honda Motor Co., Ltd.: 50%
Guangzhou Auto Group Corp.: 50%
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| Location |
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Guangzhou City, China |
| Representative |
: |
Koji Kadowaki, President |
| Employment |
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Approx. 2,400 associates |
| Start Production |
: |
March 1999 |
| Products |
: |
Accord 2.0L, 2.3L, 3.0L V6 and Odyssey |
| Annual Capacity |
: |
120,000 units (as of February 2003) |
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