Honda sets plan for European market - Company Profile - Brief Article

Automotive Industries, Feb, 2002 by Andrea Wielgat

Last year was a busy one for Honda Motor Co. Ltd. in Europe.

The automaker opened a new plant at its Swindon, U.K., complex and added North American and European production of the CR-V. On the product side, it launched at least five new or updated models across the continent.

But 2001 was just a building block for this year, which Honda says should be strong for both sales and manufacturing. For 2002, Honda is counting on several new models to help it reach its goal of selling 350,000 units in the market.

The company's new diesel offerings are one of the keys to that sales goal, says Minoru Harada, president of Honda Motor Europe. In May, the 3-and 5-door versions of the Civic get a 1.7L lsuzu Motors Ltd. Polish-built common rail direct-injection turbo diesel engine. The automaker is also developing its own diesel powerplant for the new Accord, set to be launched next year.

But Honda is not stopping there. Harada says diesel engines will continue to be a trend in Europe and that the company needs more diesel offerings. "Especially for the light truck segment and the SUV segment," asserts Harada. "Customers demand SUVs with more diesel versions."

The automaker is also looking forward to the launch of its Jazz B-segment car, he says. The small car, which was co-developed in Europe, competes in Europe's largest segment, which also includes the VW Polo, Toyota Vans, Peugeot 206 and Ford Fiesta. The segment is critical to any automaker's success in Europe.

On the manufacturing side, Honda is set to build 210,000 units this year at its complex in Swindon. Next year, production should reach its capacity of 250,000 units.

"Compared to (2000), capacity of Swindon will be increasing almost 65 percent," Harada says.

Once at capacity, Honda's Swindon plants will be responsible for eight percent of the automaker's global production.

RELATED ARTICLE: HONDA EUROPE

* 2001 sales dropped 16.22 percent from 188,654 vehicles to 158,057.

* 2002 sales goal is 350,000 units in the market

* New products in the pipeline are a common-rail direct-injection turbo diesel and the Jazz B-segment car.

* European plant capacity is currently 210,000 units at the Swindon, U.K., facility, with production scheduled to increase next year.