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.