Automaker Honda Taiwan Co (台灣本田) yesterday said it plans to invest NT$4 billion (US$129.9 million) over five years to add new manufacturing equipment to its plant in Pingtung for the production of new models.
The investment is part of the company’s efforts to boost vehicle sales through expanding its showrooms and enhancing maintenance services.
The plant, which had an initial investment of NT$2.1 billion, started producing Honda vehicles in 2002.
“We are activating [a new] investment plan in 2019, with the aim to deepen our presence in the Taiwanese market,” Honda Taiwan chairman Takato Ito told an annual media gathering.
Honda Taiwan, which plans to unveil a revamped Honda HR-V model next quarter, said its vehicle sales increased 14 percent year-on-year to 38,822 units last year, a second year of growth.
The company seized a 8.8 percent share of local market last year on the back of strong sales of recreational models such as the CR-V and HR-V.
Vehicle sales this year are forecast to drop 4.7 percent to 37,000 units, given weakening economic growth and conservative private consumption, Ito said.
Overall, the market is likely to see sales fall about 3.5 percent to 420,000 units this year from 435,135 units last year, he said.
“It is a year full of uncertainty,” Ito said.
Yulon Motor Co (裕隆汽車) in November last year lowered its vehicle sales forecast for this year to 425,000 units as consumers are cautious about purchasing new vehicles amid economic uncertainty and US-China trade tensions.
POOR INTERNAL CONTROLS: Insurance Bureau Director-General Shih Chiung-hwa said the company is expected to get back on track while its chairman is suspended The Financial Supervisory Commission (FSC) yesterday fined Shin Kong Life Insurance Co (新光人壽) NT$27.6 million (US$939,415) for a reckless investment that endangered its solvency, and suspended its chairman Eugene Wu (吳東進) for poor supervision. The penalty is the second-highest in a single case after Nan Shan Life Insurance Co (南山人壽) was fined NT$30 million in September last year and its chairman Du Ying-tzyong (杜英宗) suspended for two years, the commission said. In three rounds of special and regular examinations conducted since last year, the commission found that Shin Kong Life had given too much power to an asset and liability management committee
Continental AG, which makes control units for Daimler AG cars, cannot pursue antitrust claims against a group of patent owners, including Qualcomm Inc, which are seeking royalties on telecommunications technology, a federal judge in Texas ruled. Avanci LLC, a licensing pool formed by Qualcomm, Nokia Oyj, Sharp Corp and other owners of patents on technology standards, is not breaching antitrust laws when it negotiates license agreements with automakers rather than the component makers, Barbara Lynn, chief district judge for the Northern District of Texas, said in dismissing the suit in a decision posted on Friday. The licensing group charges US$15 per vehicle
Sony Corp has cut its estimated Play Station 5 (PS5) production for this fiscal year by 4 million units, down to about 11 million, following production issues with its custom-designed system-on-chip (SOC) for the new console, people familiar with the matter said. The Tokyo-based electronics giant in July boosted orders with suppliers in anticipation of heightened demand for gaming in the holiday season and beyond, as people spend more time at home due to the COVID-19 pandemic. However, the company has come up against manufacturing issues, such as production yields as low as 50 percent for its SOC, which have cut into
HEAVY INVESTMENT: Moody’s affirmed the firm’s ‘Aa3’ rating with a ‘stable’ outlook due to its leading position in the industry and ability to match customer requirements Taiwan Semiconductor Manufacturing Co’s (TSMC, 台積電) revenue this year is expected to increase about 21 percent to NT$1.29 trillion (US$44.01 billion) from NT$1.07 trillion last year, driven by strong demand for advanced 5-nanometer and 7-nanometer chips mainly used in smartphones and high-performance computing devices, a Moody’s Investors Service report on Wednesday said. TSMC’s rate of revenue growth next year is to increase to 7.5 percent, the ratings agency said. The company, which supplies 5-nanometer chips for Apple Inc’s new iPad series, has introduced the advanced chips ahead of its competitors and gained a significant share of the market for the foundry industry’s