Honda expects a boost from new Civic

[lovelyguy]

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.
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[d16man]

I think they will get it too...American cars just arn't as reliable, cheap, or "cool" according to the latest poll among teenagers.

[FragSource]

Originally Posted by d16man

I think they will get it too...American cars just arn't as reliable, cheap, or "cool" according to the latest poll among teenagers.

I would have to strongly agree with you, i own a Honda Civic, and i have gotton so many comments about it, and yes it is cheap, but its worth every penny, trust me...they will sell alot of them

[Reix]

from 2008 to 2010 honda will put 1 bi in 4 new factories trough the world.

it will produce 30% more vehicles.

[la marqueza]

I have a 2001 4-door Civic. It's still in great shape, but does have some wear and tear. It will be paid off by the end of the year. I just don't know if I should trade it in for a newer Civic or go with the Pilot. With gas prices the way they are a Civic might be the better choice.

[harleysneak]

I agree, I think with gas prices the way they are right now, the best choice would be to go with the Civic, especially since you've already had one and it's obviously done well for you.

[burnvic53]

i would love to go with a new civic, they may be harder for me to get used to the styling, but i like the power they are putting into them now, as compared to my fury of 100 horses.

[Katgrl1979]

Oh, I would love a Civic. You can hardly find better gas mileage, and it is great that they are getting more power. I've always thought they were really nice cars, but a little small. However, I've seen newer ones, and they seem to have more space. Can anybody confirm that?

[EyesofFreedom]

Yes, the newer ones are getting bigger, and gas has a lot to do with honda's sales. Just look around in your hometowns at the used car lots. You will see a lot of suv's, american lead sleds like the caprice and vicki, and vans. Smaller cars are moving quickly because people are tired of these astronomical gas prices. People are driving used civics and then decide to buy a new one, well the civic was faithful so thats where they go.

Wanna have fun, go to a local buy here-pay here dealer and tell them you are willing to pay kelly blue book plus 25% for a civic and watch them jump to the phone trying to find one!

[la marqueza]

Yep, I am getting the new Civic. My dad tells me the best time to go for the new ones is in March or April. The companies roll out the new ones in Nov. Dec. for the following year and by April they want the dealerships want them off the lots. So I will eyeing the new 2007 Civic.