Honda is looking to build another assembly plant in Indonesia in an effort to diversify its production as well as intensify its sales of small car models in the Asean region, a report says.
The new facility – expected to be up and running in 2014 – will sit on the grounds of the company’s existing factory located in Bekasi, on the outskirts of Jakarta. Despite the recent production half brought about by strikes, it looks like the company has decided that people are easier to handle than nature.
When the new facility arrives, it’ll double production lines at the site to two, and with planned upgrades to the existing line – which currently has an output capacity of 60,000 vehicles annually – the annual production capacity will be 180,000 units with both lines running.
The company says the expansion means it will be ramping up production of models made at the existing Bekasi plant, and these are the Jazz, the CR-V and the Freed MPV.
It’s also set to build models that haven’t been built in Indonesia, and candidates are the little Brio compact as well as the City, which is currently being brought in to the country from Thailand.
The automaker built around 49,000 vehicles in Indonesia in 2011, 11% less from the year before – the interruptions brought about by the flooding in Thailand forced Honda to cut output across the region. It is based on this experience that the company has taken the decision to split its Asean production, looking at turning Indonesia into a key site.
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malaysia boleh!!!
Satu lagi projek Barisan Nasional
Why not Malaysia?
why not malaysia?
high labour cost, high land cost,
even maid dun wan to go Malaysia…why should Honda?
Protonlah
lu orang tak suka, tak pa.
Indonesia got disaster oso wat…earthquake, volcano,tsunami sumore…honda people dont think enough!
You are forgetting Japan itself is no stranger to those disaster, but it didn’t stop them from being more advance than us. Obviously they know what they are doing. :)
Alternatively titled “Honda shows middle finger to Malaysian government in response to Malaysian government showing middle finger to AFTA”
Naughty boy, Ash …
let’s see if they will close Melaka too….
And now we consumers show back middle finger to HONDA by selling expensive car which produced in CHEAP x10 country!!
why indonesia? why not malaysia?? sighhhhh .. we all know why ….. :(
the reason must be a cheap labour cost as compared to Malaysia. If we need cheap labour cost it goes to foreigner i.e. Bangla, Pakistan..etc.
Exactly what some of the other people are saying ….. Why not Malaysia ar? Honda is only one.
Suzuki http://m.bisnis.com/articles/suzuki-corp-to-open-new-factory-in-indonesia-investing-us$780-million ….
Toyota http://www.thejakartapost.com/news/2012/01/18/toyota-invest-rp13-trillion-indonesia.html
Go figure
I believe the decision is mainly influenced by high population and cheaper labour rate in Indonesia.
Rubbish car produced by Rubbish factory which now assemble in Rubbish country, the most important is still selling at rubbish PRICE(The most rubbish). Honda is now nothing but RUBBISH,RUBBISH…………………….
wat? u mad? u jelly?
Pity M’sia bcoz of your own foolish NAP policy. Cakap kuat macam sedang mau kuat maju. Slogan untuk syok kan hati rakyat tapi buat macam macam policy untuk halangnya. Itu lah BN govt trademark.
Labour intensive industries. Won’t be surprised if the government rejected the proposals initially.
malaysia is rapidly losing its manufacturing business to neighboring country thanks to current G. most japanese electronic company which open factory in the 70s and 80s are exiting the country one by one. well any production manager here want to try their luck in indon or thai?
japanese 101 business sense. low cost high profit. malaysia no more cheap labour. so time to move out.
why not malaysia?