Honda Phils reviews plan to export CBUs

Japanese-owned Honda Philippines Inc., has decided to go back to the drawing board for its plans to manufacture and export completely built up units under the Automotive Export Plan.

According to Arnel Doria, deputy head for marketing of Honda, it now appears uncertain that Honda Philippines can stick to its original schedule to go into CBU export by 2006.

Honda Philippines, Doria disclosed is facing stiff competition from other ASEAN units of Honda which are also planning to go into the export of CBUs.

"Honda units in Indonesia, Thailand, Malaysia and even Vietnam all want to go into exports," Doria said.

Doria said individual Honda units in the region all compete in presenting an export plan to Honda Japan.

Unfortunately for the Philippines, Doria said, it is hampered by low domestic base sales which then impact adversely on manufacturing costs.

Unable to prove competitive cost manufacturing, Doria acknowledged that the Philippines’ export plan pales in comparison to its ASEAN neighbors.

Doria even cited the fact that Honda China, which is preceded by Honda Philippines, now has higher sales of close to 400,000 units per annum.

Total Philippine vehicle sales last year was around 88,000 units only.

Meanwhile, Honda unveiled yesterday its new 2005 CRV model that now comes with a new 2.4-liter engine and some external modifications.

According to Doria, with the new model, Honda is targeting increased sales of its sports utility vehicles to 300 units a month from last year’s 265 units a month.

Last year, Doria said, the CRV had a 20- percent market share of the SUV market.

The new CRV, Doria said, would continue to come in the five-seater and eight-seater variant.