TOKYO – Honda will increase the production capacity of key plants in Canada and China, Honda Motor Co President and CEO Mr Hiroyuki Yoshino announced at the company’s year-end press conference.

Honda’s light truck production capacity will be boosted by 10,000 units in Canada, giving the plant a total capacity of 190,000 units. In addition to the Odyssey Minivan and Acura MDX, Honda of Canada Manufacturing will begin production of the all-new Pilot Sport Utility Vehicle in the second quarter of next year.

In China, Honda will increase its production capacity from 50,000 units to 120,000 units per year by March 2003. Production of the Japanese model Odyssey will begin in the second quarter of 2002.

Mr Yoshino also outlined details of Honda’s future corporate strategy, which concentrates on developing the speed, efficiency and flexibility of its global manufacturing resources, advanced technology and a focus on the customer.

A key strategy is the company’s "made by global Honda" approach to efficiency and flexibility using Honda plants worldwide.

Small cars will take the lead in Honda’s 2002 new model plans starting with a new small car to be introduced in Japan later this week.

Honda will also boost its Thailand operations – the company’s largest Asian manufacturing base outside Japan – by starting production of a new model based on Honda’s Global Small Car Platform next year. Exports of the Thai-built small car will begin in 2003.

Mr Yoshino also sees an important role for Honda’s operations in Asia and China with plans to make the Asian region a key supply station in Honda’s Global Supply Network for parts.

"We are currently making plans for Asia to become a main source for the supply of parts for powertrains such as engines and transmissions to other areas of the world, including Europe," he said.

Meanwhile, Honda expects to set a new global sales record with more than 2.67 million vehicles for 2001 – an increase of approximately 5 per cent from last year. Honda’s domestic motor vehicle sales have exceeded initial targets and Honda now estimates sales will reach a record 860,000 units in 2001.

Honda’s 2002 global sales targets are 7.11 million motorcycles, 2.81 million motor vehicles and 4.59 million power products with a total figure of 14.51 million units.

Honda is one of the world’s largest engine manufacturers, with 2001 production expected at more than 13 million engines produced globally for motor vehicles, motorcycles and power products.