« FAW unveils the Bentung A501 | Home Page | Seat fits the 1.4 TSI engine on the Leon »
Honda to invest £250 miilion in Kei cars production
By Yoann Besnard on 18 March 2008 | 
(0) Comments | Permalink
Honda has announced it will invest £250 million into its subsidiary Yachiyo Industry to reorganize its production output of Kei car models.
The investment will help to modernize the current Yokkaichi plant and build a new facility. The combined annual production capacity of the two plants will be approximately 240,000 units, which is almost the same as the current capacity.
The two factories will separate the production based on product characteristics. The new plant will produce the front-engined models, Life and Zest, while the existing plant will focus on the midship-engined models, Acty and Vamos. The new facility will start building engines in the first half of 2009 and will switch to car production by 2010.
Honda wants to reorganize its Kei cars production system in order to reduce cost and offer competitively priced models on the Japanese car market which has been in recession for the last fifteen years.