Assembly Lines:Chinese Honda Plant Begins Auto Exports
GUANGZHOU, China-Honda Automobile-China Co. (CHAC) has begun exporting Jazz compact cars to Europe. A joint venture comprised of Honda Motor Co. (Tokyo) and Guangzhou Auto Group Co., the new plant ramped up to full production in April and is the first auto production plant in China dedicated exclusively to exports.
CHAC expects to manufacture approximately 10,000 Jazz automobiles in 2005, every one of which will be exported to European markets, including Germany, and sold through local Honda subsidiaries.
According to Honda, CHAC is tapping into production know-how and a parts procurement network established by the company's previous ventures-including Guangzhou Honda Automobile Co. and Dongfeng Honda Engine Co.-to increase competitiveness in the areas of quality and cost by leveraging economies of scale.