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| Business steadily expands throughout the area, becoming more flexible to meet diversifying needs. |
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| Increased local procurement of powertrain parts |
| Keeping pace with China’s fast-growing car market, in 2006 Honda expanded production capacity at Dongfeng Honda Automobile Co., Ltd. and Guangzhou Honda Automobile Co., Ltd. In 2007, cumulative output at Guangzhou reached one million units, and a new company was established to strengthen the cost-competitive advantages of Honda powertrain parts. Plans are in place to construct an R&D facility at the plant, complete with a full-range high-speed test track for use in development of Guangzhou Honda brand products. Honda’s own brand product lineup is also expanding in China. Following Guangzhou Honda’s introduction of the Accord in 1999, the Odyssey and Fit models were also introduced, while in 2007, Dongfeng Honda commenced the sales of the Civic Hybrid in addition to production and sales of our mainstay cars, the Civic and the CR-V. Additionally, in September 2006 Honda introduced the Acura brand to the luxury vehicle market in China to meet the changing needs of customers in this growing market. The first brand expansion outside North America where the car was originally released, this introduction is a timely response to customer needs, bringing new value to customers in China. |
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| Growth of motorcycle product operations in China |
| In Honda’s motorcycle business in China, two joint-venture companies, Sundiro Honda Motorcycle Co. and Wuyang-Honda Motors (Guangzhou) Co., have been active in manufacturing scooter products. These include the 50cc Today, a popular key product in Japan which is equipped with the PGM-FI electronic fuel injection system, as well as products targeting markets inside China. In addition, the 125cc Joying scooter--equipped with the new engine combining driving performance and fuel efficiency--went on sale in 2007. In the power products category, Honda has started to manufacture generators and general-purpose engines, both for export and use in China. Furthermore, Sundiro Honda’s Tianjin plant, Wuyang-Honda, and Guangzhou Honda Automobile Co., Ltd. have all been designated “green factories.” In keeping with their dedication to environmentally responsible craftsmanship, these companies are vigorously committed to raising the effectiveness of Honda’s environmental performance. |
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