Honda boosts Thai stake

Mon, 16 Mar 1998 | Source: DJ

BANGKOK (Dow Jones): Japan's Honda Motor Co. said Saturday it will pump 4.19 billion baht (about $97 million) into its faltering automobile-manufacturing subsidiary in Thailand, a move that will make it a 97 percent owner of the Thai unit.

The move reflects a growing number of exceptions that cash- starved Thailand is making to its Alien Business Law, which restricts foreign ownership in key industries. Previously Honda was forbidden to own more than 50 percent of the Thai unit, a Honda spokesman said.

"We made this decision to support the finances of our Thai manufacturing company," said Shigeaki Kato, a Honda spokesman in Bangkok. "We expect demand for automobiles to decline for the rest of the year, and it's getting very difficult financially for the company to operate."

View JSON | Print