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Honda First to Blink as Chinese Market Slows Down

Japanese maker delaying construction of $822 mil plant; others could follow.

by on Oct.23, 2015

Honda put the brakes on construction of a proposed plant with Wuhan, which already makes the CR-V in China, due to the sluggish market there.

Automakers from around the world have been flooding the Chinese market with new products – and the plants to build them. But with the long boom in Chinese auto sales suddenly running out of momentum, automakers may be rethinking their investment options.

Honda certainly has. The Japanese maker says it will delay construction of an $822 million assembly plant it was planning to build in Wuhan – which would have been its third factory run in partnership with China’s domestic maker, Dongfeng Motor Group.

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For now, Honda still intends to eventually go ahead with the plant, but even a temporary delay comes as a sign that the industry is questioning assumptions about just how big the market will grow – and how soon. (more…)