Honda Goes Italian

HONDA GOES ITALIAN

HONDA MOTOR COMPANY of Japan and Piaggio of Italy have signed an agreement that underlines the growing trend in international joint ventures.

Under the terms of the agreement, Honda will provide key components-motorcycle engines, for instance-to Gilera, one of the marques owned by Piaggio. The move confirms not only the intensity of Honda’s interest in European markets, but Piaggio’s interest in developing the Gilera motorcycle line.

The two companies say they’ll form working groups to exchange ideas and information relative to the European motorcycle market and legislative arenas. The move also provides Honda with a business partner that is a member of the European Economic Community.

The initial plan announced by both companies is aimed toward development of new small and mid-sized motorcycles, but it also includes, according to Gilera, development of new, large-capacity Güeras, with engines and other components derived from Honda technology. Additionally, both companies say they’ll study the possibility of manufacturing common parts, developing joint procurement operations, and ways to capitalize on the expected economic growth in ex-Eastern-bloc countries.

A final agreement on how technical collaboration will be realized is still under study and probably will be signed this month, according to Honda sources.

Honda currently is involved in motorcycle factories in Belgium, Italy and Spain, owns 25 percent of Peugeot Motorcycles in France, and has 10 distributors throughout Europe. In last year’s European new-bike market, which totaled 1.2 million mopeds and 600,000 motorcycles, Honda sold about 160,000 motorcycles.

Piaggio, which last year signed an agreement similar to this one with Daihatsu for the production in Italy of small delivery vans, owns the Vespa, Puch and Gilera names. Europe’s largest manufacturer of two-wheeled vehicles, Piaggio sold about 750,000 vehicles last year, most of them scooters and mopeds.

Jon F. Thompson