Several carmakers to focus efforts on Asia

BMW AG, Suzuki Motor Corp., Volkswagen AG (VW), Daimler AG subsidiary Mercedes-Benz and Honda Motor Co. have announced that they would be focusing their efforts in Asia. BMW is set to designate India as its major sourcing hub and will start selling the hybrid version of its Mercedes Benz S-Class sedans in Japan in 2009. Suzuki, meanwhile, will make its seventh-generation Alto in partnership with Chinese company Chongqing Changan Automobile Co. The car will be produced and marketed for the Chinese market mid-2009. On the tail of BMW’s push in China, VW said it will spend about €2 billion (US$2.6 billion) to add new models and boost sales in China. Mercedes and Honda, meanwhile, have decided to make Indonesia their production base for multi-purpose vehicles. Mercedes will spend around Rp200 billion (US$16.68 million) to renovate its 3,000-per-year plant in Bogor, West Java, while Honda will produce Freed MPVs in its Karawang, West Java factory in preparation for a June launch. (February 27/ March 14/ April 9, 2009)