Honda's Argentina arm to build new automobile plant

A boost in economic stability has proved to be a boon for the automobile industry in Argentina. Statistics state that in year 2006, the Argentine auto mart reached a size close to 450,000 units, up by 17 per cent over the previous year.

When in Argentina, Japanese car major Honda is operating the Argentine way. Honda Motor de Argentina, the Honda subsidiary in the Latin American nation, has said that it will build a new automobile plant on Argentine soil to begin local production in that country. Honda sales are up in the Latin American nation, having reached 7,300 units in 2006, up 50 per cent compared to the previous year.

According to automobile industry news, Honda Motor de Argentina is all set to acquire new property in Buenos Aires province. Reports added that the construction of a new automobile production plant with processes to include stamping, welding, painting, and final assembly as well as engine assembly, will be kicked off in the near future.

With an ambitious target of 30,000 units every year, the new plant will start production in the latter half of 2009. The total investment related to the establishment of the new plant is expected to be approximately US$100 million, and the company might go in for recruitment of 800 new employees.

With continued market growth expected in Argentina, Honda will begin local automobile production to fulfill expanding market demand. The new plant is expected to also kick start exports to other countries in the South American region.

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