Honda Retools Brazil Operations As Market Recovers

Honda is restructuring its Brazilian subsidiary as the market there shows signs of recovery from a prolonged slump.

The Japanese automaker says it recognizes the need to strengthen its business structure based on the current market size and shift toward a more sustainable, forward-thinking business foundation.

Wards Intelligence data shows Brazilian vehicle sales last year rose 9.2% to 2,239,403 units after bottoming out at 2,050,327 units in 2016 during a prolonged economic and political crisis. It was the first year-on-year increase since 2013 when sales peaked at 3,801,859 units.

Honda Automoveis do Brasil (HAB), the automaker’s Brazilian automobile production and sales subsidiary, is to restructure its production operations.

Beginning next year, HAB will end a hold on production at its new plant in the city of Itirapina in the state of São Paulo. At the same time, production at HAB’s existing plant in Sumare, São Paulo, will be transferred to the new facility. The Sumare plant will continue production while changing over to powertrain manufacturing.

Vehicle production workers at Sumare will be transferred to the new plant.

Honda says the restructuring will increase HAB’s efficiency and reduce its environmental footprint. HAB is planning to complete restructuring by 2021.

HAB, established in 1996, builds Fit, City, WR-V, HR-V and Civic vehicles with a production capacity of 120,000 units a year.