Home / World Business
Sat, Nov 29, 2003 - Page 12 News List

Volkswagen becomes first to export cars from China

AP , SHANGHAI

Volkswagen won't be alone in the export business for long.

Honda Motor Co, which makes Accord sedans in China, is building a plant near the southern city of Guangzhou. It is due to open late next year, turning out subcompact cars for export to Asia and Europe, said company spokesman David Iida.

Honda has not said what it plans to sell or where. But it has emphasized its determination to keep its made-in-China cars at the same level of quality as vehicles it produces elsewhere. It took a 65 percent stake in its Guangzhou venture to ensure it would keep managerial control.

China's own domestic automakers are a jumble of more than 120 small, little-known companies.

Chinese officials say they plan to consolidate those makers into a handful of big industrial groups that can challenge foreign makers for a share of world markets.

But for now, the only makers in China with the technology and size to sell to affluent Western buyers are those with foreign links, said Bonnell, the industry analyst.

"It's going to be the name `Honda,' not `made-in-China,' that sells the cars," he said.

This story has been viewed 7056 times.
TOP top