The Taiwan Economic News reports that Honda Taiwan Co. has recently promised to the Industrial Development Bureau (IDB) that it will expand parts procurement from local suppliers next year and raise the local content level in its Taiwanese made cars.
Industry sources said that Honda Taiwan decided to adopt a very high ratio of imported parts on its Taiwanese made cars (to facilitate the production ramp-up) and this has reportedly caused concern among local parts suppliers.
Honda Taiwan has now promised the IDB that it will elevate the local content rate to at least 30% next year and continue to raise it thereafter.
The report says that Honda Taiwan has recently invited several local components suppliers to its new car production plant in Pingtung, southern Taiwan.
Established early this year, Honda Taiwan is the youngest carmaker in Taiwan and was formed after Honda Japan terminated a 40-year assembly partnership with Sanyang Industry Co., Ltd. of Taiwan.
The report also says that Honda Taiwan has decided to produce two car lines, the second-generation CR-V sport utility vehicle and the Accord.