Honda Motor has decided against expanding its manufacturing capacity in Guangzhou, where it runs a joint venture with a local Chinese partner, a source close to the car maker told the Wall Street Journal.
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Guangzhou Automobile Industry Group chairman Zhang Fangyou earlier this month said the joint venture was considering expanding its production capacity after its plants in southern China nearly reached their full capacity of 360,000 vehicles a year this year.
But Honda’s top executives in China, who gathered in Guangzhou earlier this week to finalise the company’s business plan for next year, “decided against expanding capacity so quickly…and decided to take a more cautious approach,” the source said.
