By on August 14, 2019

Image: Honda

The consolidation of Honda’s production landscape continues, with the automaker announcing Tuesday that it will cease production of passenger vehicles in Argentina next year. Honda builds the subcompact HR-V at its Campana assembly plant; come 2020, the facility will revert back to building only motorcycles.

It’s just the latest move by an automaker eager to bolster its bottom line and build defences against a possible recession by streamlining its operations on a global scale. Like other companies, Honda is eager to rid itself of excess plant capacity and source vehicles from cost-effective locales.

After setting up shop in the country in 2006, Hondas began building passenger vehicles in 2011. The HR-V exists in a competitive segment, as subcompact CUVs are growing in popularity in the Latin American region.

Earlier this year, Honda announced it would end vehicle assembly in the UK and Turkey in 2021, with that region’s supply of Civic coming instead from North America. Earlier this month, the automaker lifted off the throttle on U.S. Civic and Accord production to match output with anticipated demand. The shift that disappeared from its Marysville, Ohio plant will likely return once the European plants close up ashop.

Honda’s Campana plant employs approximately 1,050 workers, with Telesur reporting that the local union is in talks with Honda to offer a buyout to employees. The timing of Tuesday’s announcement is suspect, given that it’s just two days after Argentinians voted for a change in government. The election of a leftist government led by Alberto Fernandez led to a steep currency and stock slide.

In response to media questioning, Honda stated that the election had nothing to do with the decision. Rather, the automaker said the announcement was part of its “global reorganization of auto production,” Reuters reported.

[Image: Honda]

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3 Comments on “The Pullout Continues: Honda to End Argentina Auto Production...”

  • avatar

    Argentina is collapsing as we speak. It could be the start of a region-wide collapse. Let’s hope not.

  • avatar
    schmitt trigger

    The last time Argentina had a solid economy, Juan Domingo Peron was still in power.

  • avatar

    Hardly. In 1914, Canada and Argentina were at similar stages of development/gdp per capita, and Argentina was generally regarded as having better prospects. A few decades later, Juan Peron came along, and that was then end of that. And of the Argentine economy.

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