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Honda begins building new automobile production plant in Brazil; starting with new Fit in 2 years

Honda Automóveis do Brasil Ltda. (HAB), the Honda automobile production and sales subsidiary in Brazil, has begun construction of its new automobile production plant in the city of Itirapina in the state of São Paulo (approximately 200 km (124 miles) northwest of the city of São Paulo).

With an annual production capacity of 120,000 units, the new plant is scheduled to become operational in two years, in 2015. Including the acquisition of the 5.8 million m2 site, the purchase of equipment and construction of the plant building, the total investment for the new plant is expected to be approximately 1 billion Brazilian Reais (US$436 million). The new plant will employ approximately 2,000 associates.

HAB plans to begin production at the new plant with the all-new Fit, and then increase the model line-up for production of Fit-class compact vehicles, for which demand is high on a global basis. As a part of HAB’s efforts to address environmental concerns, the new plant will employ shorter production processes and introduce the latest technologies in the painting process. Moreover, HAB will strive to establish a highly efficient production system at the new plant through various approaches including making the optimal use of automation technologies.

Combining the production capacity of the new plant with the existing plant in Sumaré, HAB’s total annual automobile production capacity will double from the current 120,000 units to 240,000 units. Moreover, with the goal to strengthen local development capabilities in Brazil, Honda is establishing a new automobile R&D center within the plant in Sumaré , which will start full-scale operations by the end of this year.

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