Dongfeng Honda To Boost Chinese Parts Output by 70 Percent.

Dongfeng Honda Auto Parts Co. said it will increase production in fiscal 2003 by 70 percent over the previous year in order to supply Guangzhou Honda Automobile Co., which plans to start manufacturing the compact Fit Saloon in the summer.

The joint venture of Honda Motor Co. and Dongfeng Automobile Group produces core parts, including brake discs and crankshafts for engines. It turned out 700,000 units in 2002, the company said.

Output will be raised to more than 1.2 million units in 2003, with roughly 70 per cent of parts to be shipped to Guangzhou Honda, where production capacity will be doubled in 2004 to 240,000 units from the current 120,000, the company said.

Dongfeng Honda Auto Parts said it is likely to receive additional funds to further expand production capacity because a second factory at Guangzhou Honda, exclusively for exports, will come on line in 2004.