Honda launches Malaysian JV<\/p>\n
KUALA LUMPUR (Reuters): Japan's third-largest automaker, Honda
\nMotor Co Ltd, launched on Monday the operations of its joint
\nventure in Malaysia, strengthening its presence in Southeast Asia
\nahead of tariff cuts in 2003.<\/p>\n
The firm, called DRB-Oriental-Honda Sdn Bhd (DOH), signed
\nagreements on Monday with 39 dealers to distribute Honda vehicles
\nthroughout the country.<\/p>\n
DOH is 49-percent-owned by Honda and 36-percent by Malaysia's
\nDRB-Hicom.<\/p>\n
Oriental Holdings, which has been the Japanese carmaker's sole
\nagent in Malaysia for nearly 45 years, will take the remaining
\n15-percent stake.<\/p>\n
DOH will begin building a new manufacturing plant in the
\nsouthwestern state of Malacca in September at a cost of 175
\nmillion ringgit (US$46 million). The plant, which is expected to
\nstart production by early 2003, will be capable of making 20,000
\nvehicles annually.<\/p>\n
The venture makes Honda the first foreign carmaker to set up a
\nmanufacturing base in Malaysia ahead of a reduction in protective
\ntaxes under the ASEAN Free Trade Area (AFTA) in 2003.<\/p>",
"url": "https:\/\/jawawa.id\/newsitem\/honda-launches-malaysian-jv-1447893297",
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