Honda, Teledyne to make propeller engines -- paper


TOKYO, Feb 19 (Reuters) - Honda Motor Co Ltd is in final talks with U.S. aircraft engine maker Teledyne Continental Motors Inc to set up a 50-50 joint venture in the United States to build propeller engines for small planes, the Nihon Keizai Shimbun reported on Thursday.

The report followed Honda's Monday announcement that it would develop, make and market a new jet engine for small business jets with General Electric Co , a significant step by Japan's second-biggest auto maker towards entering the aircraft business.

The newspaper said the new firm, expected to be set up as early as this spring, would make and sell engines as well as key parts.

The U.S. is the largest market in the world for small airplanes and demand for engines, including replacements, is about 10,000 units a year, the paper said.

Annual sales of such engines there are estimated at 20 to 30 billion yen ($187.7-281.5 million), but the amount would be larger if after-sales service were included, it said. ($1=106.57 yen)



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