CHINA: Honda plant to make first car for Europe
Honda's new plant here is preparing to build 30,000 Jazz models for export to Europe starting next year - the first China-built cars to reach western Europe.
According to Automotive News Europe, Honda officials said Honda Automobile (China) - a joint venture of Honda, Dongfeng Motor, and Guangzhou Auto Group - will begin producing the Jazz [Fit] exclusively for export by the end of the year.
Honda, Japan's No. 2 carmaker, received permission from the Chinese government to take a 65% stake in the Chinese venture on the condition that it builds cars for export at the plant, which has a capacity of 50,000 units. Other foreign carmakers in China have 50-50 joint ventures.
Honda plans to export all 50,000 units of the Jazz from the factory starting in 2006 or 2007. Most of the cars will go to Europe; the rest will go to countries in Southeast Asia. Europe also will continue to receive Jazz models from Japan, as Honda sells about 130,000 units a year in western Europe.
The cost of building cars in China is up to 30% higher than in other countries since many components must be imported and there are high import tariffs on parts such as engines and transmissions.
The Chinese government's long-term goal is to export 40% of the vehicles built in the country. Newswires [last week] reported that Volkswagen, China's market leader, will build models for export from a new €200 million assembly plant in Shanghai.
But other sources said VW and other foreign carmakers building cars in China will be too busy meeting booming domestic demand to export cars on a large scale.
This year sees a record number of new models - not mere facelifts - destined for UK showrooms. For carmakers, it should give a boost to flagging sales on the back of increased use of platform sharing....
Japan's vehicle manufacturers are experiencing a sharp slowdown in earnings growth in the current fiscal year due to adverse currency valuations, rising raw material and energy costs and higher intere...
Suppliers to the redesigned Volkswagen Passat were involved in the development process "very, very early," said Horst Koenig, project leader, for the B6 model programme....
Volkswagen's sales in Russia through its official dealerships were 2,599 vehicles in January-March, up 54% on the same period in 2004, an official with the company's Moscow office told Prime-Tass on F...
Honda's joint venture with a Chinese automaker was the second top seller in the Chinese car market in the January-March quarter, outranked only by Hyundai Motor 's joint venture, China's state-run med...
As it launched the Brazilian-built Fox three-door compact in Europe, Volkswagen was introducing the Crossfox in Brazil, a five-door pseudo-offroader version....
Honda Motor will cut back on business trips to China to keep a low profile at a time when anti-Japanese sentiment appears to be running high, the automaker's chief executive reportedly said on Thursda...
Volkswagen's new Fox small car will be profitable in the first generation of the new model helped by low production costs, chief executive Bernd Pischetsrieder told Bloomberg News....
- COMMENT: US JLR plant likely to get a warm welcome
- VEHICLE ANALYSIS: 2014 Peugeot RCZ R
- VEHICLE ANALYSIS: Mitsubishi's top-selling PHEV
- VEHICLE ANALYSIS: 2014 Kia Sportage
- THE WEEK THAT WAS: Paris, the US, Sweden...
- JLR eyes US southern states 'transplant' - paper
- Tatkata airbag recall extended to 7.8m US vehicles
- JLR-Chery JV opens China factory
- Tesla outsells rivals as Europe sales rise 6%
- Daimler restructures cooperation with Tesla
- Jaguar Land Rover: Providing remarkable growth throughout the economic downturn
- PLDB - vehicle cycle plan database (annual subscription)
- Global light vehicle safety systems market- forecasts to 2029
- LMC Automotive's European Passenger Car Production Estimates (annual subscription)
- Ford Motor Company - Strategy and SWOT Report