Honda Says It Will Stop Producing Cars In Argentina In 2020
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Japan’s Honda Motor Co on Tuesday said it will stop producing automobiles in Argentina next year as part of a global shift in how it shares production between regions.
Honda said its Campana plant in the province of Buenos Aires, which produces the HR-V model, will focus solely on making on motorcycles. Honda started making motorcycles in Argentina in 2006 and began auto production there in 2011.
Responding to Reuters questions, Honda said in a statement the decision was part of a global reorganization of auto production and was unrelated to the results of the primary elections in Argentina on Sunday.
Around 1,000 employees work in Honda Argentina, and the company is in talks with the local union to offer a buyout for the employees involved in the auto production, the company said.
Questions & Answers
Q.Why is Honda stopping car production in Argentina?
Why is Honda stopping car production in Argentina?
Honda stated this decision is part of a global reorganisation of its auto production, aimed at shifting how it shares manufacturing between different regions. The company clarified it is not related to Argentina's recent primary election results.
Q.What will happen to the Campana plant in Buenos Aires after 2020?
What will happen to the Campana plant in Buenos Aires after 2020?
The Campana plant, which currently produces the HR-V model, will stop car production in 2020. Afterwards, the facility will focus exclusively on manufacturing motorcycles, which Honda has been producing in Argentina since 2006.
Q.What plans does Honda have for the employees affected by the change?
What plans does Honda have for the employees affected by the change?
Honda is currently engaged in discussions with the local union regarding the employees who work in auto production. The company intends to offer a buyout for these workers as part of the transition plan.
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