Honda Accord hybrid for Oz?

Honda's troubles have forced the Japanese brand to exploit its production bright spots. Speaking to journalists before the Open House Ceremony in Thailand, Asian Honda President Hiroshi Kobayashi confirmed operations would be expanded including additional production lines at Honda's facilities in Indonesia, India and Malaysia.

More models, including the new Accord hybrid, will be added to production requirements at Thailand's resurrected plant, he said. Parts for the hybrid system will come from Japan and the car assembled there for export, with Australia in its delivery list after the Accord petrol model arrives in 2013.

Honda announced the release of a PHEV system for the ninth generation Accord earlier this year. Details of which (options include the IMA version used for Civic) system the Accord hybrid will use were unavailable. The Jazz hybrid, joining Honda's local lineup late 2012, will be produced in Thailand.

Moving its current factory to higher ground was not part of Asian Honda's approach to flood recovery, said Kobayashi. "Firstly, there are six thousand people [employed] there. Of course there was a discussion but the priority was to resume production as quickly as possible.

"To build a factory takes at least two years. So even if it [flash-flooding] happened again this year, we still have many customers waiting. The building surfaces have no [structural] problem; only the machines."

The quick fix at Ayutthaya might sound risky for Honda but "long range [projection] is a different story". Plans are under consideration for another factory in Thailand to accommodate anticipated growth in demand over 10 years.

Same applies to Honda's interests elsewhere in Asia, so "regardless of this flood or whatever, we can increase production… we can minimise risk and complement each other for parts," said Kobayashi.

"Thailand is one of the main countries for automobile production. We have many suppliers here. But Indonesia and India [production opportunity] is big and in Malaysia, the total market is increasing."

The new plant in Indonesia is expected to produce around 120,000 models a year; assigned to Honda's 'kei car' offerings including the Brio sub-light hatch and minivan derivative, also under consideration for Australia.

Indonesian drivers favour small but spacious peoplemovers while Malaysia's preference for small segment sedans is more relevant to the Australian market.

Kobayashi admitted the company could not confirm the potential of vehicles arriving here from either source. "In the future that's possible because before [recent stoppages] Asian countries were more harmonised while complementing the component [supply]. Indonesia and Malaysia is booming, and they also want to export."

It's now plain to Honda the company needs to extend vehicle supply support from all available ports. "Component exchange is not sufficient; complete cars -- CKD -- is needed now," admitted Kobayashi.

Ideally Asian Honda would include production of the Civic hatch; currently sourced from the UK and consequently expensive to supply, said Honda Australia MD, Satoshi Matsuzawa.

Honda plans to increase production and sales of diesel models in India. "The number for projection in sales in India is the biggest within 10 years," said Kobayashi.

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