Honda has opened a new, BRL100-m (USD42.68-m) research and development (R&D) centre in Sumare (Brazil), which is tasked with developing models to meet the needs of the Brazilian market, and to localise components and technologies. It employs approximately 300 in engineering, purchasing, and R&D. The expansion includes a new laboratory with chassis dynamometers and pollutant emissions systems; the equipment is set to contribute to component development, as well as durability testing and consumption measurements. The centre also validates raw materials and local components. Luis Gazzola, Honda Automobiles Brazil's general manager of research and development, said, "The decision to strengthen our R&D capabilities reflects our commitment to develop products that meet the expectations of Brazilian customers. Our goal is to increase the level of components localisation in the next two years, and to develop new versions and specific models for our market."
Significance: This investment follows the beginning of construction in November 2014 of a new plant in Itirapina in Sao Paulo, which will go online in 2015 and should see annual production of 200,000 units. IHS Automotive forecasts the new plant will build the upcoming Brio, Mobilio, and Vezel; production of the City, Civic, and Fit will continue at Sumare, as well as the CR-V from 2017. Honda's Brazilian output is expected to grow to 276,000 units, up from 136,766 units in 2013.
