Honda Auto Parts
Manufacturing Co., Ltd. Begins Operations in China
Honda Auto Parts Manufacturing
Co., Ltd. (CHAM), Honda’s wholly owned automobile powertrain
components production subsidiary in China, began operations at
its newly built plant in Nanhai Industrial Park District, Foshan
City. Those attending the ceremony included local dignitaries,
guests and staff from the local governments of Guangdong
Province, Foshan City, and Nanhai District, as well as Takeo
Fukui, president and CEO of Honda Motor Co., Ltd.
CHAM will manufacture powertrain
components including automobile transmissions, which will be
supplied to Honda’s automobile production joint venture
operations in China. With the annual production capacity of
240,000 units (transmissions), the new plant will initially
accommodate machining and assembly of transmissions and drive
shafts as well as machining of crank shafts and connecting rods
for engines. The company is planning later to add the machining
of gears as well as production of control parts, both key high
value transmission components currently supplied from Japan.
In China, Honda manufactures
automobiles with three joint venture companies:
Guangzhou Honda Automobile Co., Ltd.,
Dongfeng Honda Automobile Co., Ltd., and
Honda Automobile (China) Co., Ltd. which manufactures
automobiles for export.
The combined annual production
capacity has now reached 530,000 units -- 360,000 units at
Guangzhou Honda; 120,000 units at Dongfeng Honda; and 50,000
units at Honda Automobile (China)
The start-up of production at CHAM
enables Honda to secure an adequate supply of powertrain
components to support expansion of Honda’s automobile production
in China, and also to further increase local content of
powertrain components, which will help cost reduction efforts
and strengthen Honda’s competitiveness in the market.
Among all auto parts and components,
transmission requires a high level of manufacturing technologies.
Therefore, local production of transmissions plays as important a role
in the effort to increase local content as local production of finished
automobiles and engines. As the first automaker to begin local
production of transmissions in China, Honda will accelerate its efforts
to improve its competitiveness.
CHAM is Honda’s fourth integrated
automatic transmission production plant in the world following
operations in Ohio in the U.S., Indonesia, and Georgia in the U.S. The
addition of CHAM will strengthen Honda’s transmission supply capability
to support worldwide automobile production.
About Honda Auto Parts Manufacturing Co.,
Established: September 2005
Production: March 2007
Nanhai District, Foshan City, Guangdong Province (30km west of