Honda Motor Co Ltd (ADR) (NYSE: HMC) announced that it plans to streamline its Japanese operations and established a system to share new production technologies worldwide.
“As we focus more on adopting electrification and other new technologies, we want to hone our vehicle manufacturing expertise in Japan and expand it globally,” said Takahiro Hachigo, the CEO of Honda.
As part of the plan, the company is considering to consolidate two of its factories into one. It planned to end production at its Sayama plant in Saitama Prefecture north of Tokyo by 2022, and consolidate production at Sayama plant into its Yorii plant in the same prefecture. The capacity will also be cut by around 24% in domestic market as domestic sales stagnate.
In the newly consolidated plant at Yorii, the company said that it would establish a function “to create, standardise and globally share new production technologies to accommodate new automotive technologies such as electrification technologies.” In the Yorii plant, it will also produce other vehicles, which include larger-sized global models.
The company also said that it planned to open a new plant in China by 2019.