This decision was relayed by Honda Motor chairman Yoshide Munekuni to President Arroyo during her state visit to Japan last Sept. 14.
Munekuni informed the President that Honda plans to set up automobile transmission operations in the Philippines next year.
Honda will reportedly invest P175 million or ¥400 million for the production of about 40,000 transmission units beginning in 2002.
The finished units will be exported to various Honda factories in Thailand, Indonesia, Malaysia, Pakistan and India.
This will be in addition to current Honda exports which reached $32 million in 2000 and $37 million in 2001.
According to Munekuni, "the transmission project will strengthen the position of Philippine trade with ASEAN members, even with the full implementation of the ASEAN Free Trade Agreement (AFTA) in 2003."
The President welcomed Honda’s decision to locate its transmission manufacturing operations in the Philippines and use the country as its export base for the ASEAN region.
Arroyo noted that the Philippines already hosts the transmission plants of Toyota, Mitsubishi and Isuzu.
She pointed out that "with the planned investments of Honda, the Philippines is established as the transmission hub for the ASEAN region."
Trade and Industry Secretary Manuel Roxas II was present at the Sept. 14 meeting between President Arroyo and Munekuni at the Imperial Hotel in Tokyo, Japan.
Roxas commented that "we are truly gratified by this manifestation of Honda’s confidence in the economic future of the Philippines."
He added that "the establishment of Honda’s transmission manufacturing plant (in the Philippines) will not only further sharpen the skills of Filipino workers, but contribute significantly to the Philippines’ development efforts."
Roxas assured Honda that the Arroyo administration is committed to support the growth of the automotive industry.
Honda has held the No. 1 spot in terms of passenger car sales in the Philippines.