Honda to consolidate production in ASEAN

Honda to consolidate production in ASEAN

Dow Jones, Tokyo

Honda Motor Co. intends to consolidate production in the
Southeast Asian countries where it builds cars, now that the
Association of Southeast Asian Nations (ASEAN) is due to
substantially lower import tariffs for autos among member
countries, The Nihon Keizai Shimbun reported in its Tuesday
edition, citing company sources.

By 2004, Honda plans to unify all local production of its City
subcompact in Thailand while ending its assembly in Indonesia and
the Philippines, and will consider similar moves for three to
four other models, including the Accord and the Civic.

The City is a small sedan with a 1.3-liter engine. The
company made some 1,000 units in Indonesia this year and about
2,400 in the Philippines. All City models sold in these two
countries in the future will be imported from Thailand.

Honda's Thai plant, which began exporting the City to Japan in
December, will have its output capacity raised to 120,000
vehicles a year, up from the current 70,000.

As a result, the number of Honda models built in Indonesia
will drop from five to four, and the Philippines will see a
decline from four to three.

The consolidation plan aims to enhance efficiency at Honda
plants in each country. As part of this effort, the company's
Indonesian plant began shipping the Stream minivan to Thailand
this year.

Among ASEAN countries, Honda operates plants in Thailand,
Indonesia, the Philippines and Malaysia, with its combined output
in the region projected to reach 100,000 in 2002.