Honda Begins Production at New Plant in China

Wuyang-Honda Motors (Guangzhou) Co., Ltd., a motorcycle production and sales joint venture in China between Japan's Honda Motor Co. and Guangzhou Motors Group Company, recently began production at a new motorcycle plant capable of producing 1 million units annually.
Wuyang-Honda has been producing 100cc to 125cc motorcycles and scooters since 1992. The company produced 638,000 units in 2005, a 17 percent increase from 2004, and shipped more than 70,000 units to 38 countries. It achieved a cumulative production milestone of 4 million units in February 2006.
The new 100,000 sq. meter facility was built with an investment of 380 million RMB (approximately 5.6 billion yen). The layout of the new plant improves efficiency by synchronizing welding, painting, engine assembly and final assembly. It also features a number of new technologies, including adopting acrylic acid in the e-coating process to increase rust protection by six times compared to previous methods.
Wuyang-Honda plans to being production of a new small scooter with Honda Programmed Fuel Injection System (PGM-FI) at the new plant. The planned scooter would represent the first two-wheeler equipped with PGM-FI to be produced and sold in China.
In other powersports news from China, the export of motorcycles from the country's southern Guangdong province reached a worth of $94.36 million in the first two months of this year, up 32.8 percent compared to January and February 2005.
According to a report produced by China's Ministry of Commerce, the province exported 226,000 motorcycles in January and February. The number of 50cc to 100cc motorcycles exported during the period was 55,000 units, an increase of 62.1 percent compared to the same period last year, and the number of 100cc to 125cc motorcycles totaled 109,000 units, up 46.3 percent compared to the same period in 2005.

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