Honda forms joint venture to strengthen RI operation<\/p>\n
JAKARTA (JP): Japan's Honda Motor Co. Ltd. set up a joint
\nventure with local partner PT Prospect Motor on Thursday in a bid
\nto boost its automotive operations in the country.<\/p>\n
Honda's chairman Yoshihide Munekuni said the firm, with paid-
\nup capital of US$70 million, would streamline Honda's four-wheel
\nautomotive operations by centralizing tasks of two of its
\npartners.<\/p>\n
He hoped the move would allow Honda to better compete in local
\nand overseas markets.<\/p>\n
\"The move is part of our plan to expand our operation in Asia
\nand to strengthen our operation here,\" he told reporters
\nfollowing the signing of the joint venture agreement. \"It is also
\npart of our efforts to put ourselves at the forefront of the
\nglobal automotive business.\"<\/p>\n
Although automotive sales in Indonesia suffered a sharp
\ndownturn during the country's economic crisis, the future of the
\ncountry's market remains promising, he said.<\/p>\n
The Japanese automaker holds a 49 percent stake in the new
\ncompany, PT Honda Prospect Motor (HPM), with the remainder owned
\nby Prospect Motor.<\/p>\n
HPM president Hadi Budiman confirmed the venture's $70 million
\nin paid-up capital.<\/p>\n
He said four companies serve Honda businessess in Indonesia;
\nProspect Motor which assembles Honda's four wheeled vehicles, PT
\nImora Honda, which produces car components used by Honda, PT
\nImora Motor, seller and distributor of Honda's car products and
\nPT Honda and Prospect Engines Manufacturing (HOPE), which
\nassembles engines and spare parts.<\/p>\n
He said the new joint venture would combine work usually under
\nImora Honda and HOPE.<\/p>\n
\"The new joint venture will combine Honda's engines and
\ncomponents and spare parts industry, the distribution of the
\nproducts and the assembly industry.\"<\/p>\n
Hadi said Honda's car sales dropped by 83 percent in 1998,
\nreaching 1,182 from 6,872 units in 1997. Honda sells its cars
\nunder Accord, Civic and City brands.<\/p>\n
\"This year, we expect to sell 1,300 cars,\" he said. \"But it
\nstill very hard to predict the local market. Furthermore, some
\npolitical events planned for later this year, such as the general
\nelection, are expected to make many people halt their spending on
\nvehicles.\"<\/p>\n
Hadi said the company planned to increase its exports of
\nautomotive components to 54,000 units this year, from 30,000
\nunits in 1998, to offset the decline in local sales.<\/p>\n
\"Our export value is expected to increase to $18 million this
\nyear, from $15.9 million in 1998,\" he said.<\/p>\n
Its automotive components are exported to the United States,
\nthe United Kingdom, Japan, Malaysia, the Philippines and
\nPakistan. (gis)<\/p>",
"url": "https:\/\/jawawa.id\/newsitem\/honda-forms-joint-venture-to-strengthen-ri-operation-1447893297",
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