Bangkok--Aug 30--Asian Honda Motor
Honda Motor Co., Ltd. to invest Rp 1.28 trillion (US$153 million)
Jakarta, 30 August, 2000 - P.T. Astra International, Tbk (AI), one of Indonesia's largest business conglomerates, and Honda Motor Co., Ltd.(HM), the world's largest manufacturer of engines and motorcycles, today announced their agreement to establish a major new joint-venture company, P.T. Astra Honda Motor(AHM), which will integrate the two organizations' existing motorcycle operations in Indonesia and start operating by January, 2001.
With its equity held equally by AI and HM, P.T. Astra Honda Motor will fully integrate the assets, employees and operational responsibilities of P.T. Honda Federal, a 45:55 joint-venture between P.T. Federal Motor and HM, which manufactures engines, components and body frames for Honda motorcycles, PT Federal Motor, which manufactures the motorcycles, and acquire the Honda national distributorship of P.T. Astra International, Tbk - Honda Sales Operation.
Honda Motor Co., Ltd.'s President and Chief Executive Officer, Mr. Hiroyuki Yoshino, praised P.T. Astra International's vision and said Honda's Rp1.28 trillion (US$153 million) investment in AHM represented a major, long-term commitment by Honda to the people and Government of Indonesia. "This year Indonesia is expected to regain its position as the world's third largest motorcycle market," he said "making it one of the strategically most important growth opportunities in the world. With the integration of our motorcycle operations in Indonesia we aim to enhance our competitiveness through closer coordination with the Honda network in the ASEAN region."
Mr. Yoshino said AHM would benefit from its improved access to capital, advanced technology and human resource development which would enable the company and its 4,500 associates to deliver greater customer satisfaction in this strategically important market. At the same time AHM would actively contribute to the well-being of Indonesian society and to the communities it aimed to serve.
"P.T. Astra Honda Motor will be giving immediate consideration to the introduction of major new models to better meet the needs of its Indonesian customers and to reflect changing market conditions," he added. "In addition, in line with Honda's global commitment to leadership in environmental responsibility, we will also be working to improve the fuel efficiency of our existing 4-stroke models, to further reduce exhaust emissions and to have AHM manufacturing operations obtain ISO 14001 certification, the international environmental management standard currently held by all major Honda manufacturing facilities worldwide."
P.T. Astra International, Tbk's President, Mr. T.P. Rachmat, welcomed Honda's major direct investment as a vote of confidence in the Indonesian nation which would contribute significantly to the economy and improve employment opportunities. "The establishment of AHM will benefit all our Indonesian stakeholders," he said "and enable us to better serve the nation by providing affordable and reliable transportation for the people in this rapidly growing market.
"In anticipation of keener competition, we intend to build on the market leadership position which we have maintained since the beginning of our partnership with Honda by expanding into new customer segments by offering various new models which will give more choice to our customers. In addition, with Honda as our strategic partner, we will enhance our access to the global market, and acquire new technology to improve local competence, skills and capabilities."
Mr.Rachmat said the new joint-venture would generate mutual benefits for both parties, based on Honda's confidence in the Indonesian partner's local management, in-depth market knowledge and its nation-wide dealer network's customer service skills.
Honda's motorcycle manufacturing presence in Indonesia began in 1971 when it signed a technical collaboration agreement with P.T. Federal Motor for the production of Honda motorcycles. In 1973 cooperation was further expanded with the establishment of P.T. Honda Federal.
In the first seven months of this year Indonesian motorcycle sales recorded the most rapid growth in ASEAN with total sales reaching 431,000 units, an increase of 101 percent over the same period last year. Honda sold 233,185 units for a 54.1 percent share to maintain its leading market position.
Distributed by Corporate Communications Division, Asian Honda Motor Co., Ltd.
For further information, please call Mr. Hiroshi Mikajiri or Mrs. Pimporn Siriwan at Tel. 236-0256 Fax. 635-1052.
Please also visit Honda in Thailand website at http://www.honda.th.com End.
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