Earlier this year, Honda announced its intention to stop making cars in the United Kingdom and Turkey from 2021.
Now, we learn that the Japanese automaker will also end automobile production in Argentina from 2020. Honda Motor de Argentina S.A. (HAR), a Honda subsidiary in Argentina which currently produces both motorcycles and automobiles, announced it will discontinue production of the HR-V subcompact crossover at the Campana plant in the province of Buenos Aires next year.
Starting on May 31, 2020 the facility will focus on manufacturing motorcycles, Honda added. Models currently built at the plant include the Wave, CG150, and XR150L.
The move is motivated by Honda’s need to strengthen its automobile business structure "in the face of abrupt changes occurring to automobile industries around the world." More specifically, the automaker says it wants to optimize automobile production allocation and production capacity on a global basis.
Honda has been building cars in Argentina since 2011 (City and HR-V) and motorcycles since 2006. The company said it will continue its automobile sales and after-sales service operation in the South American country.
The Campana plant has around 1,000 employees and the fate of roughly half of them is unclear at the moment. According to Reuters, Honda is in talks with the local union to offer a buyout for workers involved in auto production.
Also read: Honda Reveals South America’s Sub-Compact WR-V In Brazil
The company also said the timing of the announcement has nothing to do with the results of the primary elections in Argentina on Sunday. The country’s peso and stock market crashed on Monday after a center-left coalition won the elections.