The Pullout Continues: Honda to End Argentina Auto Production

Steph Willems
by Steph Willems

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]

Steph Willems
Steph Willems

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  • Schmitt trigger Schmitt trigger on Aug 15, 2019

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

  • Ect Ect on Aug 16, 2019

    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.

  • Tsarcasm No, Japan only. Life costs by Rank:#1 - House (150k+)#2 - Education (30k+)#3 - Automobile (30k+) why waste hard earned money in inferior crap => Korean, Chinese, and American cars are trash. a toyota or honda will last twice as long.
  • Tassos In the 90s we hired a former PhD student and friend of mine, who 'worked' at GM "Research" labs, to come work for us as a 'temp' lecturer and get paid extra. He had no objection from GM, came during the day (around 2 PM), two hours drive round trip, plus the 1.5 hour lecture, twice weekly. (basically he goofed off two entire afternoons out of the five) He told me they gave him a different model new car every month, everything (even gas) paid. Instead of him paying parking, I told him to give me the cars and I drove them for those 90 mins, did my shopping etc. Almost ALL sucked, except the Eldo coupe with the Northstar. That was a nice engine with plenty of power (by 90s standards). One time they gave him the accursed Caddy Catera, which was as fun driving as having sex with a fish, AND to make it worse, the driver's door handle broke and my friend told me GM had to pay an arm and a leg to fix it, needed to replace almost the whole damned door!
  • 3-On-The-Tree I only buy Toyota cars. But if the Chinese cars are cheap people will buy them. They don’t care about the above issues that were stated in this forum.
  • Tassos Ford models are like dumb Hollywood movies. The original is far better than their god damned sequels. This was true of the Mustang vs the II, AND the Capri vs its second gen, and their BEV PORKER atrocities many decades later
  • Jeff I would not buy a Chinese car with the current global situation with Taiwan and Ukraine but I believe eventually China will become the number 1 producer of vehicles globally. Lou brought up a valid point that much of the content of new vehicles has components made in China. Even many of the tires that are sold are made in China. Try buying a small appliance or electronics that are not made in China. Many of the electric motors that go in power reclining furniture are made in China. Many auto parts especially replacement parts are made in China.
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