Dongfeng Honda Automobile Company
Encyclopedia
Dongfeng Honda Automobile Co., Ltd. (东风本田汽车有限公司) is a joint venture
between the Dongfeng Motor Corporation and Honda Motor Company. It produces the Honda CR-V
for sales in China.
The 50-50 joint venture was established in 2003 for US$ 98 million in capital. It established various stages of manufacturing in China:
Another plant in Guangzhou, Guangdong province is operated by Honda Automobile (China) Company
, which is a separate joint-venture (55% Honda, 25% Guangzhou Auto Group, 10% Honda Motor China Investments, and 10% Dongfeng Motor Group), and produces 240,000 vehicles annually, primarily for export.
These joint ventures allows Honda
to control their name in the Chinese
market and offer a cheaper place to manufacture cars in Asia
.
1: CR-V, including 2.0 and 2.4l engines
2: CIVIC with 1.8l engine
3: SPIRIOR思铂睿（ACURA TSX/EURO ACCORD) with 2.4l engine.
Joint venture
A joint venture is a business agreement in which parties agree to develop, for a finite time, a new entity and new assets by contributing equity. They exercise control over the enterprise and consequently share revenues, expenses and assets...
between the Dongfeng Motor Corporation and Honda Motor Company. It produces the Honda CR-V
Honda CR-V
The Honda CR-V is a compact suv, now called crossover, manufactured since 1995 by Honda. It was loosely derived from the Honda Civic to satisfy a public demand for a sport-utility vehicle from Honda. There are discrepancies as to what "CR-V" stands for, with Honda sources in different markets...
for sales in China.
Facilities
The plant is located in Wuhan, in the central province of Hubei. The current facility is 50,000 square metres and employs 930 workers. The new expansion in 2008 will increase the plant size to 181,000 square metres and total work force of 2,800.The 50-50 joint venture was established in 2003 for US$ 98 million in capital. It established various stages of manufacturing in China:
- welding
- painting
- engine production
- assembly
- vehicle testing
Another plant in Guangzhou, Guangdong province is operated by Honda Automobile (China) Company
Honda Automobile (China) Company
Honda Automobile Company is Honda's importer in Guangdong Province, China. It is 10% owned by Dongfeng Motor Corporation, which also has a manufacturing joint venture with Honda through the Dongfeng Honda Automobile Company. Honda Automobile is the only automotive joint-venture in China that has...
, which is a separate joint-venture (55% Honda, 25% Guangzhou Auto Group, 10% Honda Motor China Investments, and 10% Dongfeng Motor Group), and produces 240,000 vehicles annually, primarily for export.
Growth
A further investment would allow for production increase to approximately 120,000 vehicles by early 2006 (up from the current 30,000). The cost of this expansion is pegged at 2.8 billion yuan or US$ 340 million.These joint ventures allows Honda
Honda
is a Japanese public multinational corporation primarily known as a manufacturer of automobiles and motorcycles.Honda has been the world's largest motorcycle manufacturer since 1959, as well as the world's largest manufacturer of internal combustion engines measured by volume, producing more than...
to control their name in the Chinese
China
Chinese civilization may refer to:* China for more general discussion of the country.* Chinese culture* Greater China, the transnational community of ethnic Chinese.* History of China* Sinosphere, the area historically affected by Chinese culture...
market and offer a cheaper place to manufacture cars in Asia
Asia
Asia is the world's largest and most populous continent, located primarily in the eastern and northern hemispheres. It covers 8.7% of the Earth's total surface area and with approximately 3.879 billion people, it hosts 60% of the world's current human population...
.
Vehicles
The Dondfeng Honda plant manufactures three products of vehicles:1: CR-V, including 2.0 and 2.4l engines
2: CIVIC with 1.8l engine
3: SPIRIOR思铂睿（ACURA TSX/EURO ACCORD) with 2.4l engine.