Argentina set for new Honda car plant

Honda Motor de Argentina S.A. (HAR), a Honda subsidiary, has announced it will be building a new car plant in Buenos Aries with production due to start in the latter half of 2009.

The factory’s annual capacity of 30,000 units will supply the local Argentinian market and provide 800 new jobs. Production, final assembly and engine assembly plants will be located at the new site and as a result, total investment to establish the facility is estimated at US$100 million (over £48m).

Economic stability has meant the car market in Argentina has made good progress in recent years. In 2006, the market size reached approximately 450,000 units – showing a growth of 17 per cent on 2005.

Honda car sales are also buoyant, reaching 7,300 units in 2006 – up 50 per cent on the previous year and HAR hopes the new plant will continue to fulfill the expanding demand in Argentina.

The new plant will eventually begin exporting products to other countries in South America and play a key role in Honda’s production network in South America along with the Honda auto plant in Brazil.