Honda Establishes New Sales Company in Chile

December 14, 1998, Chile


Chile, December 14, 1998 - Honda Motor Co., Ltd. issued the following News Release in Chile on December 11, 1998 local time.
Honda Motor Co., Ltd. has announced that it is establishing a local sales subsidiary in Chile. Honda Motor de Chile S.A. will import and sell Honda motorcycles and automobiles, as well as power products, with operations due to commence in January 1999.

The new company is being established as a joint venture between Honda Motor Co., Ltd. and Tecfin C.P.A., a local import agent for Honda products. The joint venture contract was formally signed at a ceremony held on December 11, with both Honda Deputy President Mr. Koichi Amemiya and Tecfin Sales Division Manager Sr. Andres de Carsel in attendance.

Honda started selling motorcycles in the Chilean market as far back as 1973, using Tecfin as its local import agent. Also through Tecfin, Honda began selling power products, such as generators, in Chile in 1978, and automobiles in 1983. As one part of its plans to strengthen operations in the South American market, which is expected to record growth in the years ahead, Honda has decided to establish sales companies in Chile as well as Argentina.

Outline of the sales joint venture in Chile

Name of company: Honda Motor de Chile S.A.
Representative: Ken Matsuoka, President
Location of head office: Santiago
Paid-in capital: US$12.8 million
Ownership: Honda Motor Co., Ltd.: 75%
Comercial Tecfin Ltda. C.P.A.: 25%
Number of employees: approx. 30
Sales forecasts:   (1999)
  Motorcycles: 600 units
  automobiles: 1,500 units
  Power products: 4,000 units
Commencement of operations: January 1999