Honda Motor Co., Ltd.
) has announced the inauguration of the first piston workshop in
Vietnam. This will support Honda's plans to raise localization
rates to offer products at competitive prices. The company's
shares, which are down roughly 11% over a year, gained around
0.9% during trading session last Friday.
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Honda will be developing pistons in the Vietnam factory located
in Phuc Thang - Phuc Yen - Vinh Phuc province. The piston plant
spans across 3,000 meter square.
Honda invested VND 230 billion (roughly $10.8 million) in the
workshop which will start operations on Apr 1, 2014, and will
have a maximum capacity of 2.4 million units per year.
Presently, Honda has an engine casting workshop with a capacity
of 2 million units per year, a sintering workshop (2.3 million
units a year) and a spare parts center in Vietnam. The addition
of the piston workshop will provide the company a strong
foundation for local operations and exports.
Separately, Honda completed the production of 15 million bikes in
Vietnam on Mar 21, 2014. The 15 millionth bikes were of Air Blade
make. Air Blade was first introduced in Vietnam in Apr 2007 and
eventually became one of the leading models in the market.
Honda Vietnam operation strives to come up with superior quality
products to meet demand. The automaker also focuses on enhancing
export from Vietnam and has exported 40,000 units in 2013 and
expects to sell abroad another 100,000 units in 2014.
Honda also achieved two production milestones in the U.S.
recently. The company completed the production of 20 million
vehicles on Mar 20. The 20 millionth vehicles was also the 10
millionth Honda Accord built in the U.S.
Currently, Honda retains a Zacks Rank #2 (Buy).
Some other automobile stocks worth considering are
Tata Motors Limited
Daimler AG (
Tesla Motors, Inc.
). Tata Motors and Daimler sport a Zacks Rank #1 (Strong Buy)
while Tesla carries the same Zacks Rank as Honda.