Honda Motor said Tuesday it estimates it will post record auto sales of 3.55 million in 2006, a five percent increase from 2005. However, Japanese sales were down two percent from a year ago.
The company also announced a new manufacturing plant in Yorii, which will be a “resource/energy-recycling Green Factory,” reducing the amount of CO2 emitted per auto produced by 20 percent. The plant will also have improved production and logistics systems.
An additional new engine plant will also be built in Ogawa, near the Yorii site. The projected annual production capacity will be approximately 200,000 engines and will begin production in the summer of 2009. The plant will employ approximately 500 people.
Honda also plans to build a new R&D center in Sakura, Tochigi, which will begin operation in 2009.
A new company, which will manufacture and supply transmissions and other engine components to Honda plants in China, will become operational in spring 2007.
Hybrid technology will be expanded to a smaller size vehicle. Honda will offer a new dedicated hybrid vehicle in 2009 at a price level lower than the globally popular Civic Hybrid.
Application of diesel technology will be expanded to a medium-to-large size vehicle. Honda will introduce “super-clean diesel engine” that will meet the stringent U.S. Tier‡UBIN5 emission standard, which reduces exhaust gas emissions to a level equal to a gasoline engine, in the U.S. market within the next three years. Honda will consider introducing this engine in Japan as well.
A new solar cell subsidiary, Honda Soltec Co., Ltd., was established earlier in December to begin full-scale sales of soar cells when mass production begins at the new plant in Kumamoto in fall 2007.