Honda Motor Co. said Monday it will set up a company making vehicle transmissions and other drivetrain elements in China in a bid to secure sufficient supplies to support its business expansion there.
Located in Guangdong Province, the new plant, named Honda Auto Parts Manufacturing Co., will be capitalized at $90 million with a 100 percent investment by Honda's wholly owned Chinese subsidiary.
It will operate from spring 2007 with initial production capacity of 240,000 units per year.