Ally Wahlberg is a Computer Information Systems specialist. Ally leads an active lifestyle and he is a fan of extreme sports. He is also a car enthusiast and writing about his interests is one of his passions.
Honda’s automobile production and sales joint in China, Guangzhou Honda Automobile Co., Ltd has announced the establishment of a wholly-owned R&D subsidiary in China.
With an additional investment of around 2 billion R.M.B. or approximately 30 billion yen the new Honda subsidiary, Guangzhou Honda Automobile Research & Development Co. Ltd. will build an automobile R&D facility with a full-scale high-speed test score. The main objective of the R&D facility is to develop a new automobile product, which will be marketed as an original brand of Guangzhou Honda with expected sales to start in 2010.
This new vehicle will of course still make use of standard high quality Honda auto components such Honda valve cover gasket but overall will be a unique product that would cater to the specific needs of the Chinese market.
To market the new vehicle, Guangzhou Honda plans to use an original Guangzhou Honda brand which will be distinct from the Honda brand. This will be the first time that a joint venture company of a foreign automaker will create and market a product under an original brand of the joint venture company in China.
Starting the production in 1999, Guangzhou Honda has been steadily establishing a business foundation in China through various efforts such as expanding production capacity that is consistent with increasing sales, increasing local content, and strengthening its network of dealers.
The establishment of an R&D center in China displays the company’s commitment to gain greater freedom in the area of R&D that is aside from production and sales which would position the company for a further opportunity for growth in the future as a successful and growing joint venture company in the local market.
Honda has always been ahead of other companies when it comes to the introduction of new concepts to the automobile industry in China starting in the late 90s. Honda has been able to record achievement in terms of local production of the latest model Accord in China with Guangzhou Honda; establishment of China’s first dedicated automobile dealer network which integrates sales, service, service parts supply, and customer service; and the fist full-scale export to Europe of passenger vehicles manufactured at the Honda Automobile (China) Co. Ltd. plant which is committed to solely to exports. And now, Honda will once again takes on a new challenge as it developed a new product that would be sold under an original brand of its joint venture company in China.
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