Dongfeng Honda venture to build second plant

Shanghai, January 20 (Gasgoo.com) Honda Motor said today that its joint venture with Dongfeng Motor Group will build a second plant with an investment of 1.15 billion yuan ($168.4 mln) in order meet the fast-growing demand in China, now the world's biggest auto market, media reported.

The facility, due to operate in the second half of 2012, will have an initial annual production capacity of 60,000 units, which will lift the venture's total output to 300,000. Dongfeng Honda's existing facility will be raised by 40,000 units this year to 240,000 units.

Dongfeng Honda has been producing the CR-V since April 2004, the Civic since 2006 and the Spirior since August 2009. The company has continued its strong sales, with 2009 sales of 211,000 units, up 28.2%, achieving a record high for a fifth straight year.
 
Honda also operates with plants with Guangzhou Auto Group in south China with a combined capacity of 360,000 units, making Accord, City, Odyssey and Fit models. The venture may double the capacity of the smaller plant to 240,000 units in 2010.

Dongfeng Honda's second plant will lift Honda's overall China capacity to 710,000 units, with 300,000 at Dongfeng Honda, 360,000 at Guangzhou Honda, and 50,000 at Honda Auto (China), an export auto production venture.