Honda will refuse cars and will concentrate on motorcycles

Honda will refuse cars and will concentrate on motorcycles

August 21, 2019 0 By autotimesnews

This was stated by the Argentine division of the company. The only factory in the local market in Buenos Aires now produces the HR-V crossover and a number of motorcycle equipment. Car production will stop until May 31, 2020.

Reuters, with a headline, spoke about the completion of Honda‘s car production in Argentina. There will be no change in the international market. It is only about the local market, which since 2006 has been producing the HR-V crossover. The decision was made in order to reconstruct its business model due to changes in the industry.

The main problem will be the reduction of about 500 workers from the local factory. At the moment, the company is negotiating with the local union about the possible employment of layoffs, as well as compensation for the lost place. In total, the plant employs about 1,000 people. The rest will continue to build motorcycles.

The company separately stated that their decision had nothing to do with the local presidential election, and the subsequent collapse of the local currency and stock market because of this.