Wednesday, July 5, 2000
Honda To Halve Motorbike Assembly Lines At Kumamoto Plant

KUMAMOTO (Nikkei)--Honda Motor Co. plans to cut the number of motorcycle assembly lines at its factory here from four to two as part of a comprehensive re-evaluation of domestic operations.

The firm will dispose of unneeded facilities by consolidating the lines within one to two years. Consolidation of machinery-processing lines is also under study. The goal is to create the most efficient production arrangement possible, assuming annual output of 500,000 units.

Honda is considering ways to use workers displaced by the move, including sending them overseas to provide technical guidance at motorcycle plants abroad.

The company no longer needs as much domestic production capacity as before due to efforts in recent years to develop overseas bases, and also because fast growth in domestic sales is not expected.



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