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Honda Postpones Assembly Plant in China
Honda Motor Co. tells Bloomberg News it will delay the start of construction of an $822 million factory in China from late this year to perhaps 2017 because of the country’s softening car market.
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Honda Motor Co. tells Bloomberg News it will delay the start of construction of an $822 million factory in China from late this year to perhaps 2017 because of the country’s softening car market.
The plant is to be erected in Wuhan and operated through Honda’s joint venture with Dongfeng Motor Corp. The facility is likely to begin production in mid-2018, according to Honda, which says the timing will be decided by the end of this year.
The new facility, which would be Honda’s third final assembly plant in China, has a planned annual capacity of 240,000 sedans, crossovers and electric cars.
Bloomberg notes that Honda’s sales in China zoomed 34% in the first nine months of 2015. But the overall market is growing at its slowest pace in three years. Market researcher IHS Automotive tells the news service that other carmakers also are likely to stretch their expansion plans in China to match the market's slower growth rate.
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