Big Honda motorcycles to be made in Thailand

[dozer]

Honda Motor Co. has decided to partially shift production of large and midsize motorcycles with engine capacities of 400cc or more, which have been produced only in Japan, to Thailand, it has been learned.

Honda has consistently produced high quality large and midsize motorcycles in Japan. However, their profitability has dropped sharply due to the current appreciation of the yen, which is hovering around 77 yen to the dollar.

Honda has decided it must lower production costs by producing some of these models overseas.

The company plans to produce newly developed 400cc to 500cc models as early as October next year at a factory to be built on a site it has already purchased in a Bangkok suburb.

With a shrinking domestic market, Honda has been trying to improve profitability by shifting production from its Hamamatsu factory in Shizuoka Prefecture to its Kumamoto factory and consolidating production in 2008. The company has also increased overseas parts procurement.

The company has been producing 250cc-or-smaller models, a category of bikes with fierce price competition, overseas, including in China, while large and midsize models have been made in Kumamoto and exported to developed countries in the West.

Honda plans to continue production at its Kumamoto factory and keep the current employees. The Thai factory will become the company's new base for exports, responding to increased overseas demand.

Honda's car production subsidiary in Ayutthaya, Thailand, suspended production on Oct. 4 due to flooding.

However, Honda's motorcycle facility in the suburb of Bangkok suffered no flood damage and resumed production on Nov. 14 when parts supply chains were restored.

Thailand has positively taken part in free trade agreements and Honda's move shows the importance of Thailand as a production base even after the company suffered flood damage.

http://www.yomiuri.co.jp/dy/business/T111128005292.htm

[Winkie]

The above report states that Honda Thai factory will be responsible for Exports, so possibly these will not be for sale directly in Thailand (same with Triumph and Ducati).

I hope's not true, would be nice to have some more mid-size locally produced choice here in Thailand, currently only choice is Kawasaki

[centermid7]

It will be interesting to see if any of them make it to the streets here in LOS. Just the same, I'm going to keep my 125. Those bigger bikes just do not interest me at all.

[Michel]

Excellent news and maybe some competition for Kawasaki, for the benefit of all of us if the bikes will end up on the Thai market of course...

[dozer]

The AP Honda Big Wing Center which will service "Big Honda Bikes"opens this Thursday in Bangkok.


http://www.aphonda.co.th/hondabigwing/