Honda to boost RI output

Honda to boost RI output

TOKYO (AFP): Japan's Honda Motor Co. Ltd. said Wednesday it planned to boost production in Indonesia owing to stronger demand as the Southeast Asian giant emerges from crisis.

Honda would add its popular CR-V compact sports utility vehicle to its product line-up in Jakarta, with sales set to start next month, said spokesman Yuzuru Matsuno.

"The automobile market is expanding in Indonesia, and we wanted to meet the needs of our Indonesian customers," Matsuno said.

Indonesia's "political turmoil had resulted in an economic slump. But as political stability appears to be returning, an economic recovery seems to be following," he added.

Honda has set its initial CR-V sales target in Indonesia at about 5,000 vehicles a year, the spokesman said.

Honda currently makes Accord, Civic and City sedans in Indonesia, Matsuno said.

Honda sold 1,200 units of the three passenger cars in Indonesia last year, up four percent from 1998.

The spokesman could not confirm the additional investment or job hires involved in the CR-V production.