Honda is consolidating motorcycle and car production at its Campana, Buenos Aires, Argentina, plant, according to regional media reports, including La Nacion. On 14 April Honda closed its motorcycle factory in Florencio Varela and is moving production to Campana. The Florencio Varela site and factory are predicted to be sold, with workers expected to be offered transfers to the Campana plant. The two plants, however, are 100 km apart and Honda is reportedly in talks with the local union on the labour situation. Reports cite the company as saying the move to consolidate all operations in the same area will ensure production efficiency. Motorcycle sales are reported to be down 3.7% in the first quarter of 2016 in Argentina.
Significance: The move reflects ongoing difficulties in the Brazilian market, as well as a soft Argentinian market. Honda's Campana plant, which opened in May 2011, added motorcycle production to its 300,000 units of vehicle capacity the same year. The Florencio Varela plant opened in 2006. IHS Automotive does not have production or sales data on the motorcycle sector. Honda built the City at Campana until 2014, converting to production of the HR-V in 2015. As a result of the decline in the Brazilian market, Campana's vehicle production dropped 40% to 6,834 units in 2014. Exports to Brazil dropped 50% and HR-V production used to supply Argentina doubled; the HR-V is produced in both Brazil and Argentina. Argentinian production picked up to 8,061 units in 2015, with about 7,700 vehicles exported to Brazil, according to IHS Automotive production data. Through 2019, vehicle production at Campana is forecast to remain below 15,500 units, while Brazil is forecast to produce between 42,000 and 49,000 HR-Vs per year. Although sales in Argentina were stronger in 2015 than expected, Brazil's sales continue to fall and political pressures mount.
