Honda to make a new brand in China?

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Is Honda going the way of Toyota in the USA and making a Scion like brand for the Chinese market? It seems so, according to latest reports that are coming out of Guangzhou Honda, the Chinese wonder factory that got its quality levels up to that of the Japanese made Honda to the point where the CEO of Honda couldnt tell the difference between a Chinese made and a Japanese made Honda Fit. Guangzhou Honda have been busy making Fits for the domestic and overseas European markets over the past few years.

GUANGZHOU Honda Automobile Co Ltd today announced it will set up a wholly-owned research and development subsidiary, paving the way for new models under its own name as early as 2010.

The two-billion-yuan (US$263 million) Guangzhou Honda Automobile Research and Development Co Ltd will build R&D facilities that cover an area of six-million square meters. It will have a full-range of testing equipment, Honda’s Chinese venture said in a statement today.

Japan’s second-largest car maker along with its Chinese partner Guangzhou Automobile Industry Group plan to make the subsidiary to share responsibility for rolling out self-designed models under an original brand that differs from existing Honda models, the statement added.

It would be the first time for a joint venture of an overseas car maker to develop models under its own brand in China, where car makers aim to boost sales by meeting more local demands in the world’s second largest auto market.

Guangzhou Honda also produces Accord sedans, Fit compact cars, Odyssey multi purpose vehicles and City economy cars in China.