LEAD: Honda mulls scrapping plan to build minivehicle plant in Mie Pref.
Wednesday, July 14, 2021 11:50 PM

Related Stories



TOKYO, Jul. 14, 2010 (Kyodo News International) --
(Editors: ADDING INFO)

Honda Motor Co. is considering scrapping a plan to build a new minivehicle assembly plant in Mie Prefecture as the automaker does not expect an expansion of the domestic minivehicle market amid the graying of society, sources familiar with the matter said Thursday.

Honda initially planned to open the plant in the latter half of 2010 in the city of Yokkaichi with an investment of about 50 billion yen, but it froze the plan due to the global financial crisis triggered by the collapse of Lehman Brothers Holdings Inc. (OOTC:LEHMQ) in September 2008.

Honda subsidiary Yachiyo Industry Co. currently manufactures minivehicles for Honda. Minivehicles are marketed only in Japan.

The automaker may also reduce the number of minivehicle models due to the dim prospects for the domestic minivehicle market, the sources said.

Meanwhile, Honda is planning to begin operating a new plant to manufacture gasoline-electric hybrid vehicles in Yorii, Saitama Prefecture, in 2013, the opening of which has also been delayed from 2010 due to the financial crisis.

Honda sees the need to boost manufacturing of hybrid vehicles as the U.S. auto market recovers, the sources said.

Honda has already completed construction of the 113-billion-yen plant, which has an annual production capacity of 200,000 vehicles.

With the opening of the Yorii plant, Honda may consider scaling down production at its plant in Sayama, Saitama Prefecture, because the company's annual domestic production capacity of 1.3 million units may be excessive, the sources said.

 

Sponsors

Symbol :

Advertisement

Market news:

More news


Advertisement

    Recent Estimates

AnalystFirm NameSymbolEPS Estimate
XXXXXXXXXX LCC$1.19
XXXXXXXXXX BAC$0.22
robertbig j JPM$0.71
XXXXXXXXXX GOOG$5.80
XXXXXXXXXX PENN$0.27
Susan Smithhome AAPL$3.05
XXXXXXXXXX BAC$0.22
XXXXXXXXXX FDO$0.76
XXXXXXXXXX GE$0.27
DougXXXXX INTC$0.43