By BRIAN WAGNER, Associated PressThe Honda Finance division said it will be increasing its presence in China, including expanding its presence at the new China Mobile headquarters in Beijing, where the company has plans to invest more than $2 billion.
Honda Finance Chief Executive Officer Hiroshi Koyama said Tuesday that the company is planning on expanding its investment into China Mobile, which is part of China’s booming mobile market.
He said the company will start to invest in the company’s technology and operations in China Mobile’s facilities in Beijing in 2017, while expanding its investments in other locations.
Hondas latest plan to expand its investments into China was announced in January, and includes expanding its operations at the Shanghai and Tianjin offices of the company, as well as the Shanghai International Airport.
Hindsight is 20/20.
In hindsight, the last 10 years have been extremely tough for Honda Finance, which has seen its share price plummet by nearly 60% during the past three years.
That’s because of the downturn in the global economy and the slowdown in the world’s second-largest economy, which means that the financial markets in China and the U.S. are struggling to keep up.
The company is also facing a significant challenge in China because of a lack of financing from Chinese regulators.
But Honda Finance is working hard to regain market share in China in the face of those challenges, which Koyamas predecessor, Takashi Kiyota, said last year.