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.
In news that wont be shocking to anyone in China - The Chinese love their Hondas!
HONDA Motor Corp yesterday announced that sales of its Chinese venture, which makes vehicles exclusively for export, achieved 50,000 units, according to a company statement.
The Honda Automobile (China) Co Ltd, formed by the Japan’s second-largest car maker, Guangzhou Automobile Industry Co and Hong Kong-listed Dongfeng Motor Group Co, is the nation’s only venture for making vehicles that solely target overseas markets.
The company, located in Guangzhou with a registered capital of US$82 million, made 24,600 Jazz compacts last year after the venture kicked off production in 2005. Daily production reached 200 units in full capacity, the company said.
It plans to lift the production by 71 percent to reach 42,000 units this year, exporting to 10 overseas markets including German and Britain. Honda has two other ventures in China making vehicles for the domestic market.
Chinese do love their Honda Accords, at least according to The Shanghai Daily:
HONDA Motor Co, Japan’s second-largest carmaker, sold 45 percent more vehicles in China last month, helped by demand for Accord sedans.
Honda sold 25,344 vehicles through its two joint ventures on the Chinese mainland in February, the company said in a statement yesterday, Bloomberg reported. The automaker sold 56,368 vehicles in the first two months, 50 percent more than a year earlier.
Honda is trying to improve quality to expand its foothold in the world’s second-largest auto market. The Tokyo-based company said last week that it will recall 528,406 vehicles including Accord sedans, Odyssey multipurpose vehicles and Fit compact cars.
Guangzhou Honda Automobile Co, a joint venture with Denway Motors Ltd, sold 19,329 cars in February, 26 percent more than a year earlier.
Usually before Chinese New Year every Chinese person at least here in China goes nuts trying to make as much money as they can, pretty much the same with Christmas in the west - those gifts don’t come for free after all. When I say every person, I also mean every company as well, including Guangzhou Honda and Chery. Chery and Honda are about to engage in a price war with each other, Chery have massacred the $5,000USD Chery QQ6 price tag by $500USD and Honda followed suit with a price cut, although it is unspecified at the moment by how much. But the Honda Fit (The Fit is called ‘Jazz’ in other countries), one of the Chery QQ’s main rivals, is almost 100,000RMB. Who would want to pay twice the amount when you could have a brand new QQ6 for 40,000RMB?
Published by Ash November 13th, 2006
in SAIC-GM-Wuling Automobile, Shake Ring Motorcycle, Shanghai Automotive Industry Corporation, Roewe - Rong Wei, Nanjing Automobile Corporation, Honda Automobile China, Jiangling Motors, Miles automotive group, Shanghai GM, Shanghai Maple Guorun Automobile, Zhongxing, Fake Chinese Cars, Maple Leaf, Zhengzhou Yutong Bus, Volkswagen Group China, Sichuan FAW Toyota Motor, Soueast Motors, Tianjin Xiali, Heibao, Hafei Motor, Changfeng Automobile, Changhe, Chery Automobile, Chang'an Suzuki, Chang'an Motors, Beijing-Benz DaimlerChrysler Automotive, Brilliance/Zhonghua Auto, Chang'an Ford, Dadi Auto, Dongfeng Automobile Company, First Automobile Works, Geely Automobile, Great Wall Motors, Dongfeng Yueda Kia Automobile Company, Dongfeng Peugeot-Citroën Automobile, Dongfeng Honda Automobile Company, Dongfeng Liuzhou Motor Company, Dongfeng Motor Company and BYD Auto.
Check out this Chinese TV commercial for Zhong Hua, via Youtube, here’s another.
Have to say, Zhong Hua’s cars are looking great - it must be the BMW input!
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