‘Not interested’ in GM, Chrysler

HONDA Motor Co has never had much interest in the assets of General Motors or Chrysler, but it remains open to sharing hybrid and other technology with rival automakers, a senior executive said.

Executive Vice-President Koichi Kondo said Honda was approached by Chrysler LLC as a possible partner but Japan’s No. 2 automaker didn’t have to think long in rejecting the offer because it didn’t see any benefits.

Honda also has little interest in any of General Motors Corp’s assets for the same reason, he said. But Mr Kondo didn’t rule out partnerships with rivals, including GM, in sharing ecological and safety technology if the deals offer concrete advantages for Honda.

Mr Kondo said Honda will focus on ecological vehicles and aim for cost cuts, partly through global models that can lower production costs because of sales numbers. He denied Honda was trying to get bigger.

Chrysler and GM, two of the ‘Big Three’ US automakers, have filed for bankruptcy protection. Italy’s Fiat Group SpA became the new owner of most of Chrysler’s assets earlier this week, closing a deal that saves the troubled US automaker from liquidation.

Detroit-based GM filed for bankruptcy protection June 1 and has said it plans to focus on four core brands: Chevrolet, Cadillac, Buick and GMC.

Last week, GM said it found a buyer for Hummer in China’s Sichuan Tengzhong Heavy Industrial Machinery Co, and Penske Automotive Group Inc would buy the Saturn brand.

Honda, which makes the Insight hybrid and Accord sedan, has fared relatively better than not only GM and Chrysler but also its Japanese rivals Toyota Motor Corp. and Nissan Motor Co.

Honda has been more cautious in expanding its model lineup and has a good global reputation for producing small cars with flair as well as good mileage.

But Mr Kondo also said Honda was readying bigger models, which offer better profit margins for manufacturers, just in case Americans start buying them again.

Sourced via straitstimes.com