Honda puts hybrid cars on hold (in Indonesia)

As Honda begins construction of a second factory in Indonesia on Monday, its executives say the giant Japanese carmaker has no immediate plans to produce hybrid cars in Indonesia even as the government pushes for fuel- and environmentally-friendly cars.

“It would be difficult to produce hybrid cars in Indonesia , as we need to invest in the technology first,” Honda Prospect Motor (HPM) marketing director Jonfis Fandy said at the ground-breaking ceremony for Honda’s newest plant in Karawang, east of Jakarta.

The Indonesian market was not ready for hybrid cars due to a lack of knowledge about the technology, he said, adding that work was needed to inform the public about how hybrid cars operated and how they could benefit from them.

For hybrid cars to truly contribute to Indonesia ’s energy conservation efforts, they had to be available in both the low and high ends of the market, he said. “How much [energy] can we realistically save if hybrid cars are only available for high-end users which make up 30 percent of the automobile market here?” he asked rhetorically.

Honda introduced the Honda Civic Hybrid in Indonesia in 2007 but pulled it off the market because of lack of interest. Honda is currently building a plant in Thailand to produce Jazz Hybrids and the first cars will roll out in 2013.

Industry Minister MS Hidayat said on Monday that he would call on all carmakers in Indonesia, including Toyota and Honda, to push them to start producing hybrid cars, detik.com reported. President Susilo Bambang Yudhoyono last month said the government planned to offer various incentives to carmakers to make them affordable.

Honda’s second factory in the Mitrakarawang Industrial Area has been earmarked to build the Brio at the lower end of Honda’s range. The plant will produce the hatchback version, which is already sold in India and Thailand, and the newer MPV model, which will be launched in 2014.

Honda’s operation in Indonesia is a joint venture between Honda Motor Co. of Japan and PT Prospect Motor of Indonesia. The original plant, opposite the new factory, produces Jazz, CR-V and Freed models. Once completed in 2014, the second plant will triple Honda’s production capacity in Indonesia to 180,000 cars per year from 60,000.

“Indonesia is an important market for Honda,” Takanobu Ito, the CEO of Honda Motor Co., said at the ground-breaking ceremony. “With a growing market and more conducive environment for economic growth, this country has a lot of potential.”

Ito said the Indonesian operation was one of Honda’s strongest both in terms of sales and production in the Asia-Oceania region and it topped sales among Southeast Asian markets last year.

Honda has chosen Indonesia as one of its production hubs in Asia, along with India and Thailand. It plans to use more materials from local suppliers, adding a further 45 local suppliers to its current 85.

The new factory will be built by construction company PT Takenaka Indonesia. (han)

Source;
http://www.thejakartapost.com/news/2012/06/05/honda-puts-hybrid-cars-hold.html

Ford Demands Ultimate Sacrifice From Japan: Kill Some Car Factories, Then We Talk

Steve Biegun of FORD

By Bertel Schmitt
Imagine what happened if the representative of a large Japanese or Chinese car company would demand that America should close some car factories before easier access to foreign markets would be contemplated. All hell would break loose, and the Seventh Fleet would steam in the direction of the loose cannon – if it is not already there. What happens if the representative of Ford says that Japan should be required to reduce the size of its auto industry before being allowed into regional free trade talks with the United States and eight other countries in the Asia Pacific? Business as usual.


Steve Biegun, Ford’s vice president for international government affairs, showed symptoms of severe disorientation when he gave an interview to Reuters. Not only did the former foreign policy adviser to Sarah Palin require that Japan shutters some car plants before the country is admitted into the proposed Trans-Pacific Partnership (TPP) pact. Biegun also claims that Japan is “the most protected automotive market in the developed world.”

This is a perplexing claim. The U.S. has one of the lowest tariffs on auto imports, 2.5 percent. It is outdone by Japan, which has the world’s lowest tariff: Zero.
Says Reuters:

 “But Ford contends the Japanese government maintains a number of regulatory and other “non-tariff barriers” to keep out most foreign cars and also intervenes heavily in currency markets to help its auto companies export cars.”

William Duncan, director of the Japanese Automobile Manufacturers Association’s office in Washington, says Biegun’s arguments are “rather bizarre,” and I agree.

Biegun’s claim that Japan manipulates its currency must be based on hallucinations, or drugs that trigger same. A look at a chart shows that the Japanese Yen is close to its all-time-high against the dollar, a fact that shunts Japanese exports more effectively than any trade policy. Claims that Japan manipulates its currency usually trigger a psychiatric evaluation, but don’t seem to be out of character for a Sarah Palin advisor.

Biegun repeats the old “non-tariff-barrier” talking points, but cannot name specifics. On that, Biegun and his colleagues are sitting in the glass house.  The U.S. market is surrounded by one of the highest non-tariff barriers in the world, the Federal Motor Vehicle Safety Standards, which are largely incompatible with the rest of the world that is more or less aligned behind UNECE standards or is derivatives.

A large part of the American cars that come into Japan don’t even have to adhere to Japan’s standard type approval. They are coming in under the Preferential Handling Procedure (PHP), a certification option for low-volume imported vehicles of less than 2,000 vehicles per vehicle type.  Under this procedure, cars can be brought into Japan with minimum paperwork, not even a test vehicle is required. Successful importers to Japan, such as Volkswagen, BMW or Daimler, have to contend with much more red tape than the Detroit whiners.

The Preferential Handling Procedure was,  says the Japanese manufacturer association JAMA, established in “1986 at the request of the United States Government to ease the burden on importers.”  The U.S. did not reciprocate and provides no such loophole for small volume imports.

Most of all, half of America’s automobile market, and the most profitable half, is surrounded by a tariff barrier as formidable  as the Chinese Wall: Since the early 60s, there is a 25 percent tariff on light trucks imported to the U.S., which pretty much stopped imports of light trucks to the U.S.

One continues to wonder what makes Ford and its Detroit friends resort to lies and distortions. More than 70 percent of all Japanese cars sold in the U.S. are already made there. With the yen being obscenely high (Sarah Palin won’t know, she rarely travels), exports from Japan get smaller by the day.

The moaning about being shut out of the Japanese market is ridiculous. American cars are largely unsalable in Japan. They are doing worse in Europe. GM exported a total of 109 cars from the US to Europe in the first three months of 2012, says ACEA. In the same period, GM exported 819 cars to Japan, says the Japan Automobile Importers Association.

Observers are scratching their heads when the U.S. car industry is going into hysterics about Japan and the TPP. Japan’s high yen is a much more formidable barrier to entry than  America’s 2.5 percent duty. Two possibilities:  Detroit wants to maintain the chicken tax. A silly exercise, given that even made-in-the-U.S.A. Japanese trucks are not taking the world by storm. Or, more plausible, the U.S. wants to keep Japan at a disadvantage when it comes to the emerging markets that are part of the TPP.

Source (via www.autoblog.com);
http://www.thetruthaboutcars.com/2012/05/ford-demands-ultimate-sacrifice-from-japan-kill-some-car-factories-then-we-talk/

Honda Places 59 in Forbes World's 100 Biggest Public Companies List

Here is a link to the full list, very interesting;
http://www.forbes.com/global2000/list/

Honda Malaysia rolls out Concept M models

PETALING JAYA - Honda Malaysia has launched a series of special edition vehicles collectively known as the Concept M models.

Named after the first letters of Honda's official accessories partners 'M'odulo and 'M'ugen, this special fleet of cars are factory fitted with their respective accessories and are available exclusively in shades of white.

Concept M vehicles feature the Civic 2.0L and Jazz 1.5L with Mugen kits; and the Accord 2.4L with Modulo kit.

The Concept M Civic 2.0L captures the essence of a stylish and sporty sedan with outstanding performance. It is fitted with Mugen front, rear and side spoilers, rear wings and Enkei wheel rims in a special pewter grey colour, to add to its sporty stylishness.

The interior gets enhanced with grey leather stitched seats as well as tinted windows (Ecotint).
This special edition is limited to 210 units nationwide. It retails at RM137,980 (S$57,690).

The limited edition Honda Accord 2.4L features the Modulo front grille, door visor, trunk spoiler and illuminated side steps.

The interior also has grey leather stitched seats and tinted windows (Ecotint). The car is limited to 120 units nationwide, it is priced at RM176, 800. This package is inclusive of a Garmin Nuvi navigation unit.

Both the Concept M Civic 2.0L and the limited edition Accord are available in Tafetta white.

The Jazz 1.5L special edition meanwhile, gets the Mugen treatment coming factory-fitted with Mugen's front aero bumper; side, rear under and wing spoilers; and tinted windows (Ecotint). Limited to only 20 units, the 2nd Generation Jazz comes in Brilliant White Pearl and retails at RM116, 800.

Rohime Shafie, President and Chief Operating Officer of Honda Malaysia, said the Concept M models were created to meet customers' preference and expectations of "new and exciting products."

"Through an internal survey conducted amongst Honda customers, we found a good number of them showed preference for car accessories that add exclusivity and sportiness to their vehicles, especially those manufactured by Mugen and Modulo.

"With this finding, and in view of the increasing trend of preference for white shaded vehicles in Malaysia market, we have created a white-coloured fleet of Concept M special edition models to fulfil customers' demand," he said.

Source;
http://motoring.asiaone.com/Motoring/News/Story/A1Story20101125-249206.html