Honda's Chinese joint-venture to develop own brand
Foreign car makers have formed partnerships with Chinese auto firms in order to make vehicles sold as one of the existing brands. One of Honda's partnerships builds Honda Fits for the Euro market. Another of Honda's joint ventures is with Guangzhou Automobile, a state-run enterprise, that created Guangzhou Honda. That tie-in is about to do something new, in creating a third brand for the Chinese market. The first step will be establishing an R&D subsidiary to oversee the project. The size of the investment hasn't been disclosed, however, it was asserted by unnamed sources that it would exceed the funding normally allotted to these kinds of ventures by standalone Chinese companies.
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Reader Comments (Page 1 of 1)
marcus 2:49PM (7/18/2007)
I used to be a real honda fanataic but the chairman Fukui has not taken the compnay in a real direction. In the 90's Hondas wre cool, they had soul, and they had a unique set of principles in engineering but now they have become just another car company trying to jump on every bandwagon.
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Zach 3:34PM (7/18/2007)
I beg to differ, Honda has much more soul in their products compared to Toyota. I have seen how the products R&D in China have (Brilliance BS6 anyone?), so I sure I hope Honda does it right.
Tyk 4:00PM (7/18/2007)
Would you rather that they be more like Mazda? ZOOM-ZOOM? Their sales have been stagnant for the past decade to the point were BMW is outselling them on a annual basis in the US.
JC3 3:06PM (7/18/2007)
There's still much resentment in China towards Japan for the atrocities that were perpetrated in WW2.Many Chinese are very reluctant to patronize Japanese interests to this day.That may also underline the reasoning why Honda is developing a different nameplate for that market.
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ClutchCargo 3:56PM (7/18/2007)
And, if it's crap, the Honda name isnt on it! I think what marc is saying is that Honda's have moved into the mainstream American car market. larger softer etc... When the civic went to a strut front end, I knew Honda was getting a lot of American advice on what American's want. The whole keep it simple tag line went out the window.
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unkown_92111 3:57PM (7/18/2007)
If the Honda are start made in China it will be my last Honda that I ever own..
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Mohan 4:06PM (7/18/2007)
Interesting none-the-less I wonder what it will be called. I know this won't happen for years to come though, probably late 09 or 2010 we shall see something.
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KJC 6:52PM (7/18/2007)
Hmmm... are you sure it is not a steal-venture?
Some commie Chinese strong arming Honda?
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BigDoggy 10:56PM (7/18/2007)
The entire world continues to underestimate the Chinese. Boeing is teaching them to build planes, GM is teaching them how to build cars, now Honda? How stupid are these companies??? The chinese are quietly gathering knowledge on everything, from weapon systems, to how to build cars. They hoard U.S. dollars and nobody cares. Honda has nothing to gain by doing this and everything to lose. The only thing I can see motivating these compaines is profit, but ultimately it will be there death sentence.
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