2011 Digital Fact Book - Honda

South America Regional Operations
Operations Overview
Honda’s growing manufacturing and R&D operations are well situated within the
South America Region, with motorcycle and auto production expanding in Brazil,
and a new auto plant constructed in Argentina.
Honda has been producing motorcycles in Brazil since 1976 and automobiles
since 1997. Research and development activities in the region began in 1980.
Reflecting the continued growth of these operations and Honda’s sales activities,
in 2000, Honda established a South America Region Operation responsible
for developing strategies that reflect the unique economic, cultural and
market conditions of the region, and for the management of Honda’s R&D and
manufacturing operations in Brazil.
Honda’s strategic positioning in the MERCOSUR, the region’s Southern cone
free trade agreement, provides a solid foundation for its growth in the region.
MERCOSUR member countries are currently pursuing many trade agreements
with other nations within the Americas. Expansion into the larger FTAA (Free
Trade Area of the Americas) is targeted for the future.
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Production
• Honda Motor de Argentina (HAR) began production at a new auto plant in the
Campana, Buenos Aires province in March 2011. Employing 270 associates,
the plant’s processes include stamping, welding, painting and final assembly.
Products will be exported to Brazil and will complement existing automobile
production capacity in Brazil.
• Honda Automoveis do Brasil, building the Civic Sedan and Fit, completed
the first phase of its expansion activities in 2007 with $100 million in new
investment and an increase in annual production capacity to 100,000
automobiles. In the summer of 2008, additional investment of approximately
$30 million further increased production capacity to 120,000 units. The factory
currently produces the Civic sedan, Fit and City sedan, which was introduced
to Brazil in summer 2009.
• Moto Honda da Amazonia is one of Honda’s largest motorcycle plants in the
world. Production was expanded to 1.5 million units in 2007. In September 2009,
the new production line was added, with the potential to expand its annual
production capacity to 2.0 million units in the future.
• Currently, Brazil exports the Fit to left-hand drive markets in South America,
Central America and the Caribbean countries, also, Civic and City to Argentina.
• Honda Selva del Peru S.A. (HSP), a wholly owned manufacturing subsidiary of
Honda del Peru S.A. (HDP), began operations in October 2007. The US$2 million
plant has an annual capacity of 25,000 units.
7.1
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