Honda to Restructure Automobile Production Operations in Brazil

April 4, 2018, Brazil


Sumare, SÃO PAULO, Brazil, April 3, 2018 -- Honda Automoveis do Brasil Ltda. (HAB), the Honda automobile production and sales subsidiary in Brazil, today announced plans to restructure its automobile production operations to strengthen the foundation of Honda’s automobile business in Brazil.

The automobile business environment in Brazil has undergone significant changes in recent years. The market is now showing signs of gradual recovery from the shrinking of the market, however Honda recognizes the need to strengthen its business structure based on the present market size and make a shift toward a more sustainable business foundation with an eye toward the future.

Against this backdrop, HAB will take the following measures to restructure its production operations in Brazil. At the beginning of 2019, HAB will begin automobile production at its new plant (located in the city of Itirapina in the state of São Paulo) where the start of production has been on hold. At the same time, automobile production at HAB’s existing plant (located in the city of Sumare in the state of São Paulo) will be transferred sequentially to the new plant in Itirapina. The Sumare Plant will continue production while changing its key role to powertrain production.

Through this restructuring, HAB will realize production through increased efficiency and reduced environmental footprint at the new automobile production plant equipped with latest production technologies, which will enable HAB to establish a production operation which will forge the future of Honda’s automobile business in Brazil. HAB is planning to complete this restructuring by 2021.

With the transfer of automobile production to the new plant, automobile production associates at the Sumare Plant will be transferred to the new plant where they can leverage the production know-how they have amassed to date.

Building on the 20 years of automobile production in Brazil, Honda will further strengthen its business foundation in this region and continue to offer high-quality and highly-attractive products to its customers.

<About Honda Automoveis do Brasil Ltda.(HAB)>

Establishment May 1996
Capital Investment R$882.78 million
Capitalization Ratio 100% Honda South America Ltda.
Representative Issao Mizoguchi, President
Head Office Location Sumare, São Paulo, Brazil
Business Automobile production, sales, research & development
Products Fit, City, WR-V, HR-V, Civic
Lot size Sumare Plant 1.7 million square meter(m2
    Itirapina Plant 5.8 million square meter(m2
Production Capacity 120,000 units/year
Approximately 3,200 associates