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lovelyguy · 05-16-2006, 10:31 PM

EIGHTH GENERATION: The latest sedan model from the Japanese automaker will push production in its Pingtung plant to almost maximum, the company said
By Jason Tan
STAFF REPORTER
Saturday, Apr 08, 2006,Page 12

Advertising The introduction of the new Honda Civic sedan is expected to boost Honda Taiwan Co's local production output to near capacity level this year, company executives said yesterday.
"As we expect to produce 10,000 Civic sedans this year, this will boost our production output in Taiwan to nearly 30,000 units," company spokesman Chen Chun-liang (陳俊亮) told reporters on the sidelines of the launch.

The company's production plant in Pingtung City has a maximum annual output of 35,000 vehicles, he said.

But the site only churned out a total of 23,000 units of its CR-V minivans and Accord sedans last year, up from 15,000 units a year earlier, according to Wey Gow-jhy (魏國志), division manager of the sales and marketing division at Honda Taiwan.

But with the assembly of a third model -- the Civic, the plant is set to be fully utilized, Wey said.

The company yesterday introduced its eighth generation Civic to Taiwan. Targeted at buyers in their 20s and 30s, these mid-sized sedans come with 1.8 liter and 2 liter engines, with prices ranging from NT$649,000 (US$20,075) to NT$799,000.

Honda Taiwan, wholly owned by Japan's Honda Motor Co, set up a 19,700-ping (65,010m2) manufacturing facility in Pingtung City in late 2002, with capital investment of NT$3.4 billion (US$105 million). It currently has around 950 employees.

To welcome the new Civic member to the production family, Honda Taiwan began to renew equipment and take on staff at the Pingtung site late last year, he added.

To beef up sales, the company said it hoped to open up another 10 distribution outlets by the end of the year, boosting its total number of dealerships to 55.

However, this does not guarantee a rosy year for Honda Taiwan in the local market.

The company recently revised its forecast for total national auto sales downward to 450,000 units from an earlier projection of 480,000 units, according to Wey.

"Tightening bank credit policies resulting from the bad consumer debt problem have dragged down spending and impacted on auto sales," he said.

Statistics compiled by the Ministry of Transportation and Communications showed that sales of new cars dropped by nearly 25 percent during the first quarter.

The dip is partly a result of auto vendors aggressively promoting and discounting models last year in a bid to lure consumers, prompting them to make their purchases earlier, he said.

Honda Taiwan would stick to its usual tactic and not launch aggressive promotional activities this year, but follow in the footsteps of others to properly manage capacity and prevent excess inventory, Wey said.
This story has been viewed 619 times.

05-16-2006, 10:31 PM	#1 (permalink)
lovelyguy Junior Member Join Date: May 2006 Posts: 1	Honda expects a boost from new Civic EIGHTH GENERATION: The latest sedan model from the Japanese automaker will push production in its Pingtung plant to almost maximum, the company said By Jason Tan STAFF REPORTER Saturday, Apr 08, 2006,Page 12 Advertising The introduction of the new Honda Civic sedan is expected to boost Honda Taiwan Co's local production output to near capacity level this year, company executives said yesterday. "As we expect to produce 10,000 Civic sedans this year, this will boost our production output in Taiwan to nearly 30,000 units," company spokesman Chen Chun-liang (陳俊亮) told reporters on the sidelines of the launch. The company's production plant in Pingtung City has a maximum annual output of 35,000 vehicles, he said. But the site only churned out a total of 23,000 units of its CR-V minivans and Accord sedans last year, up from 15,000 units a year earlier, according to Wey Gow-jhy (魏國志), division manager of the sales and marketing division at Honda Taiwan. But with the assembly of a third model -- the Civic, the plant is set to be fully utilized, Wey said. The company yesterday introduced its eighth generation Civic to Taiwan. Targeted at buyers in their 20s and 30s, these mid-sized sedans come with 1.8 liter and 2 liter engines, with prices ranging from NT$649,000 (US$20,075) to NT$799,000. Honda Taiwan, wholly owned by Japan's Honda Motor Co, set up a 19,700-ping (65,010m2) manufacturing facility in Pingtung City in late 2002, with capital investment of NT$3.4 billion (US$105 million). It currently has around 950 employees. To welcome the new Civic member to the production family, Honda Taiwan began to renew equipment and take on staff at the Pingtung site late last year, he added. To beef up sales, the company said it hoped to open up another 10 distribution outlets by the end of the year, boosting its total number of dealerships to 55. However, this does not guarantee a rosy year for Honda Taiwan in the local market. The company recently revised its forecast for total national auto sales downward to 450,000 units from an earlier projection of 480,000 units, according to Wey. "Tightening bank credit policies resulting from the bad consumer debt problem have dragged down spending and impacted on auto sales," he said. Statistics compiled by the Ministry of Transportation and Communications showed that sales of new cars dropped by nearly 25 percent during the first quarter. The dip is partly a result of auto vendors aggressively promoting and discounting models last year in a bid to lure consumers, prompting them to make their purchases earlier, he said. Honda Taiwan would stick to its usual tactic and not launch aggressive promotional activities this year, but follow in the footsteps of others to properly manage capacity and prevent excess inventory, Wey said. This story has been viewed 619 times.