Honda Reveals Future Plans

TOKYO, July 10 Reuters published a summary of Honda's 3-year business plan

The following are key points of the announced on Wednesday by Honda Motor Co Ltd, under which the nation's second-biggest carmaker aimed for a 26 percent rise in global automobile sales.

Honda is targeting global sales of 3.4 million automobiles by 2004/05, a rise of about 700,000 from the year ended in March, and sales of 11 million motorcycles by that date, a rise of five million.

The summary includes details on North America which were released on Tuesday.

ASIA

*In China, Honda plans a line of small cars at its existing plant in Guangzhou in addition to the Odyssey minivan and Accord sedan.

*Agreement has been reached with its partner Guangzhou Auto Group Corp, owned by Hong Kong-listed Denway Motors Ltd (HKSE:0203.HK - News), and Dongfeng Motor Corp, the China's second-biggest auto group, for a feasibility study on a new production plant for the production and export of small cars, the first in China dedicated to exports.

Production is expected to begin by the end of 2004 with initial annual output of 50,000 units. The vehicles will be exported to Asia and Europe.

*By the end of 2002, it will start producing automobiles in Taiwan with production volume in the first year to total some 20,000 units. It plans to spend 12.2 billion yen there, hiring 500 workers.

*It will set up a new parts-making unit in Indonesia with fresh investment of some eight billion yen, creating 900 jobs there. The new production facility will start operation by late 2003 to produce automatic transmissions, continuously variable transmissions (CVT) and engine valves.

*Annual production capacity of manual transmissions in the Philippines will be increased to 140,000 units by late 2003 with planned investment of some two billion yen.

*About 30 percent of the transmissions produced in the Philippines and Indonesia will be supplied to Europe.

NORTH AMERICA

*Honda plans to spend a total $466 million to boost annual output capacity by about 180,000 vehicles, or 15 percent, in North America to 1.4 million units by end of March 2005.

*It plans to invest $425 million to build a new production line at its Alabama plant to double capacity to 300,000 vehicles and engines annually. Production will start on the new line in early 2004.

*Annual production capacity in Canada will be raised to 390,000 units in early 2003, at a cost of $21 million.

*It would spend $20 million at its Ohio engine plant to build about 120,000 more V6 and four-cylinder engines a year.

JAPAN

*Annual production capacity will be maintained at 1.3 million units, with a flexible production system.

EUROPE

*The Accord Diesel model will be launched in 2003 and the Civic Hybrid model will be launched in the spring of the same year.