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Honda To Cut Models By Third

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TOKYO, Japan (5 March) – Honda Motor Co. will cut the number of its motorcycle models by one-third to 200 to help the automaker save on production and procurement costs, the Nihon Keizai newspaper reported, citing unnamed sources. Honda hopes to boost profitability of its motorcycle unit by using common parts and tools, after its […]

TOKYO, Japan (5 March) – Honda Motor Co. will cut the number of its motorcycle models by one-third to 200 to help the automaker save on production and procurement costs, the Nihon Keizai newspaper reported, citing unnamed sources.
Honda hopes to boost profitability of its motorcycle unit by using common parts and tools, after its group operating profit margin fell to 9.4 percent in the business year ended last March, down from 11.4 percent as of March 1998, the Nikkei said.
Honda, which claims a 20 percent share of the global motorcycle market, will halt production of less profitable models as it aims for a 60 percent increase in sales to 7 million vehicles by March 2004. It was also claimed that the company plans to design engines and frames to suit local tastes.
Honda sales of motorcycles and other two-wheel vehicles rose 19.2 percent to 1.267 million units in the three months ended Dec. 31. The company will spend 6 billion yen ($50 million) to consolidate motorcycle production into a single line from the current two at its plant in Kumamoto on the southern island of Kyushu by 2002, Honda announced in February. (GLS)

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