Honda boosts Thai stake

Mon, 16 Mar 1998, 00:00 WIB | 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."

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