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Nissan, Honda Boost Chinese Output

Facing the same increase in demand as most automotive manufacturers who operate in China, Japanese companies Nissan and Honda plan to increase production capacity in the Asian country in order to meet the increasing demand for their vehicles.

Nissan will increase production at its joint venture operation with Dongfeng Motor by around 20 percent, bringing the total output to 560,000 units a year, starting with October 2009, Reuters reported.

To meet the increased production plan, Nissan will hire an additional 1,200 workers to their employment scheme, who will join the existing ones in a three shift day schedule. However, no additional or upgraded facilities for the Guangzhou or Hubei provence plants are to be made.

Honda, the other Japanese manufacturer to announce increase in production, will also boost annual capacity from 165,000 units to 200,000 units a year at its Dongfeng Honda Automobile operation. In all, the company's output in China will rise to 610,000 vehicle per year.

Unlike Nissan, Honda will add new equipment, as well as new workers. In all, Honda's Hubei facility is capable of producing, if needed, no less than 240,000 vehicles per year. The Japanese say that if the demand continues to rise, they will upgrade the plant to meet that goal.

For the first half of the year, the Chinese passenger car sales totaled 6.1 million, an increase of 17.7 percent compared to the same period of the previous year. June sales grew 36.5 percent compared to a year before which means Chinese buyers purchased a total of 1.14 million vehicles.
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About the author: Daniel Patrascu
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Daniel loves writing (or so he claims), and he uses this skill to offer readers a "behind the scenes" look at the automotive industry. He also enjoys talking about space exploration and robots, because in his view the only way forward for humanity is away from this planet, in metal bodies.
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