Strategic Review-


Honda will invest around US$33 million to boost output at its Guangzhou plant in Guangdong, southern China. The investment is necessary in order to meet levels of demand that have outstripped forecasts.

Honda made and sold about 32,000 Accord sedans in China last year, 28% more than the planned 25,000, and the company expects 50,000 additional orders in 2001.

The paintshop at Guangzhou will be fully upgraded by spring 2002 and new welding equipment installed later the same year. By this time, annual capacity will have increased 40% over current levels to 70,000 units.

A second model will go into production in 2002. Industry sources say Honda may opt to bring in its recently updated Step WGN minivan but no final decision has yet been made.

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