Honda exports from Thailand grow 4% in 2008

Asian Honda Motor Co., Ltd., Honda’s Bangkok-based Asia & Oceania Regional Headquarters, today reported that Honda’s product exports from Thailand in 2008 reached 104,583 million baht, representing a 4% increase over 2007. Exports were driven by automobile CBU and CKD units which accounted for 65,091 million baht, or 62% of total export value; followed by motorcycle CBU and CKD units and part kit exports at 23,881 million baht, representing 23% of the total value; and power products at 10,128 million baht, or 10% of the total value. Remaining exports included spare parts, accessories and dies & molds worth 5,483 million baht, or 5% of the total export value.

Mr. Fumihiko Ike, President & CEO, Asian Honda Motor Co., Ltd. stated that Honda has consistently grown the value and volume of product exports from Thailand since it first started exporting in 1987, contributing to the strength and durability of business in Thailand as well as trust in product quality. To date, the cumulative value of Honda exports from Thailand amounts to 555,012 million baht. However, the global economic crisis has led to a decline in Honda’s exports since late of last year.

“Export growth has slowed down since Q3 2008 due to the global financial crisis which has affected the entire world. In Q4 2008, automobile and power products export value faced a decrease while motorcycle export value remained little changed. Total export value of Honda products in Q4 dropped 12% over the same period in 2007. However, the annual export value of Honda’s products in 2008 is 4% higher than 2007” Mr. Ike said.

Automobiles:
In 2008, the total value of Honda’s automobile CBU and CKD exports remained stable. Automobile CKD exports increased 13% to 26,031 million baht due to the start-up of production of new models such as the Jazz in Brazil and the City in India. For automobile CBUs, Honda continues to export five models, which are the City, Jazz, Civic, Accord and CR-V, to over 30 countries worldwide. In 2008, automobile CBU exports were 72,497 units, which is a 6% drop in value to 39,060 million baht. The decline in exports is largely attributable to the difficulty in securing auto loans in several major markets due to the credit crunch as well as a global trend towards smaller vehicles resulting in a reduction of orders for large vehicles.


Motorcycles:
The total value of Honda’s motorcycle CBU and CKD exports in 2008 increased by 10% to 23,881 million baht. The exports of motorcycle CKD units, including part kits, increased 14% by value to 22,298 million baht, thanks mainly to new model production expansion in ASEAN countries, particularly in Vietnam, Indonesia and Cambodia. In contrast, motorcycle CBU exports fell 22% in value to 1,584 million baht, primarily due to reduced demand in Europe.

Power Products:
Thailand is Honda’s primary global production and export base for its power products, which are currently exported to over 80 countries around the world. Exports of power products decreased 2% by volume during 2008 as a result of the global financial crisis affecting the general market, especially Honda’s key markets in Europe and the United States. Total power product exports for 2008 were 1,755,132 units, worth a value of 10,128 million baht.

Mitsubishi's Normal production stoppage extended 5 weeks

Mitsubishi Motors North America will extend its previously announced seven weeks of non-production by five additional weeks this spring.

Mitsubishi will stop production at the plant in Normal from Feb. 16 through May 8, the company announced Tuesday. Production is scheduled to resume May 11. During those 12 weeks, union workers still will be able to report to work for full pay, said spokesman Dan Irvin.

The company extended the non-production period that was first planned to end April 6 as it tries to match inventory with demand in a tough economy, Irvin said.

“We constantly review the inventory here, on the ground at the dealerships, on the ground at the ports to go overseas,” Irvin said. “Our best determination is to keep the inventories in line ... we should take now 12 weeks instead of seven.”

Mitsubishi sold 97,257 vehicles last year, a nearly 25 percent decrease from the 128,993 sold in 2007. It makes nine models.

Production at the Normal plant, which builds the Galant, Eclipse, Eclipse Spyder and the Endeavor, also was down 25 percent in 2008. Workers built 59,018 vehicles last year, compared to 78,732 the previous year.

“Sales drive the production,” Irvin said.

During the upcoming 12 weeks of non-production, union associates still will be able to work their regular hours at full pay, Irvin said. While workers will not build cars, they can perform maintenance tasks or attend training. They also can prepare for 2010 models, which primarily involves training but also some equipment work and testing, Irvin said. Union members also could take vacation, he said.

Pay options, however, have not been finalized for non-union staff members, including line supervisors, engineering, purchasing and human relations, Irvin said. He declined to elaborate on what options are being considered, including whether pay cuts or a reduction in hours might be enacted.

It’s because of the union’s contract agreement last fall that members still can come to work every day and earn income, which is important in tough economic times, said United Auto Workers Local 2488 President Ralph Timan.

Union members agreed to pay and benefit cuts in the new contract in exchange for the promise of no layoffs. Mitsubishi laid off about 1,200 workers in 2004 when the plant eliminated its second shift.

“Our members were asked to sacrifice quite a bit,” Timan said. “In return, we were given guarantees of job security.”

Nonetheless, the extended shutdown is another unfortunate result of the country’s economic conditions, Timan said.

“It’s not news you want to hear. We want to see the plant running at its capabilities,” Timan said. “The sales aren’t there right now.”

And whether sales and production will continue their sharp declines is just another economic uncertainty right now.

In the first three weeks of 2009, Mitsubishi produced 1,739 vehicles. The company built 7,112 vehicles for the entire month of January in 2008 and ended the year building 3,256 vehicles in December.

How 2009’s production tally compares to 2008 statistics will depend on what happens with the economy, consumer confidence and the credit market this year, Irvin said.

“Anyone who tries to make production predictions is tossing a coin,” he said.

MMNA production

Like company sales, production of the vehicles Mitsubishi Motors North America builds in its Normal manufacturing division was down last year. The chart below compares 2007 vehicle production to 2008.

Vehicle...2007...2008...Percent change

Galant...32,445...38,536...+18.8

Eclipse...22,670...12,020...-47

Eclipse Spyder...7,695...3,924...-49

Endeavor...15,922...4,538...-71.5

Total...78,732...59,018...-25

SOURCE: Mitsubishi Motors North America

Next generation of Nissan Tiida (X12C) gets Turbo engine

The Nissan Tiida, also known in the U.S. and Canada as the Versa, has been around in Japan since 2004. That is a long time in automobile-years so it comes to no surprise that Japanese magazines like “Best Car” have started publishing renderings of the Versa / Tiida’s replacement, expected in 2010. The artist’s rendering seen here, depicts a no-frills design proposal for the sedan variant that would also spawn a five-door hatchback version.

The new Versa should be arriving sometime in 2010 as a 2011 model and will be built on the Renault Megane's platform. Engine choices should remain the same, though there's no official word if both hatchback and sedan versions will be sold. In any case, there's definitely a lot to like about this rendering. We can see many Renault-inspired cues in the front fascia with a sleeker roofline and more shapely rear end out at the back.