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Oct. 16, 2006 – Finance Digest

Honda to shift production work in Japan
Honda will shift some of its production work and build another facility in Japan to meet an expected growth in future motorcycle sales.
Honda plans to gradually shift production of medium to large motorcycles (displacement over 250cc) from its Hamamatsu factory to its Kumamoto factory starting in 2008. To do that, Honda plans to construct a motorcycle plant on the current Kumamoto factory site with an annual capacity of 600,000 units.
This step is expected to enhance the levels of production engineering and new model startup technology at Kumamoto factory. This will make Kumamoto the global leader factory in the production of motorcycles and ATVs.
The current Hamamatsu Factory motorcycle plant will become a transmission gear production plant, with the goal of establishing an efficient production system covering all processes, from molding to machining. Construction of a new casting plant and renovation of the machining and assembly lines will contribute to an evolution of the AT production system, including parts.
Honda expects global motorcycle sales of more than 18 million units by 2010, an increase of more than 5.7 million units compared with 2005.
The Kumamoto factory currently manufactures small and medium-sized motorcycles, ATVs and mini-vehicle and general purpose engines.

GE Money enters partnership with Arctic Cat in Canada
GE Money, the Canadian consumer-lending unit of the General Electric Co., entered an agreement with Arctic Cat to provide financing for the purchase of Arctic Cat equipment at all of its Canadian dealerships.
The deal does not affect U.S. dealerships, said John Tranby, marketing and communications manager at Arctic Cat’s U.S. headquarters in Minnesota. Tranby said U.S. dealers work with Sheffield Financial.
On the Canadian side, Arctic Cat dealers will get access to GE Money’s special promotional and everyday financing options, prompt credit decisions and funds within 48 hours.

Indonesia’s Sales Decline While Production Climbs
Motorcycle sales in Indonesia during the first eight months of the year totaled 2,646,503 units, down 23 percent from sales of about 3.44 million units during the same eight-month period last year, said the Indonesian Motorcycle Industry Association (AISI). Indonesia’s motorcycle market
is led by Honda, Yamaha, Suzuki and Kawasaki. Also adding to Indonesia’s market are companies from India, including Bajaj Auto Ltd., India’s second-biggest maker of scooters and motorcycles, and TVS Motor Ltd., India’s third-biggest motorcycle maker.
Despite the drop in domestic sales, AISI said it expects increased efforts by the Big Four from Japan to boost year-end production to 5.8 million units, an increase of 16 percent compared to 2005.
The Japan Automobile Manufacturers Association said Indonesia is the third most prolific supplier of powered two-wheelers in the world following India, which produces 7.7 million units annually, and China, which makes 17 million units every year.

American performance cycle hires marketing group
American Performance Cycle, a custom production bike manufacturer located in Las Vegas, has hired V-Twin Marketing as its agency of record.
“We decided to go with V-Twin Marketing due to their marketing strengths, networking abilities among industry associates, their dealer development skills and their total dedication to the V-Twin market,” Mike Sample Sr., CEO/president and co-founder of American Performance Cycles said in a press release.
American Performance Cycles, which was started in 1996, has bikes that are approved for sale and use in all 50 states.

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