Honda Begins Producing Cars in Argentina

Honda Motor Company officially introduced the plant in South America that focuses on the production of compact cars for the national and international markets.

of 2009, more and more pressure is put on the Honda to supply vehicles to this market. Therefore fervent local and foreign demand, in 2010 the automotive industry in Argentina produces about 700,000 vehicles - 40 percent more than in 2009. Most of the cars exported from Argentina to submit in Brazil, while exports increased almost 40 percent last year. Before the plant opened, Honda transporting vehicles made ​​in Brazilian and Mexican factories to meet demand in Argentini.Tvrtka believes that the plant will be a major player in the South American economy. In addition, nearly two thirds of 20,000 cars that are manufactured in a factory from 2014 to 2015 will be shipped to another country.

Cristina Fernandez, Argentina's president, said that this plant can help Honda to increase its output. It is speculated that Honda spent $ 210 million on the plant already. Officials believe that the company plans to invest $ 40 million over 2012, although the official number has not been confirmed by Honda.

Honda initially disclose their intentions to build a factory for almost three years before its opening delayed because the company does not believe demand in South America was not high enough, especially during the recent global economic crisis. However, the president of Argentina was restricting imports of cars to boost the local economy and protect its industrial production. Argentina's automotive industry provides jobs for many blue-collar employees.

Currently nine car manufacturers and suppliers have signed import-export contracts and promised to increase their distribution of automobiles and auto parts. Even Porsche, which does not participate in the car manufacturing industry in Argentina will export other goods in exchange for cars is expected to import in 2011.

Although more than 3,000 cars by BMW sold in Argentina in 2010, the country's restrictions on imports of BMW to stop exporting cars in Argentinu.Zemlje crackdown on imports has been controversial. Perhaps as a reaction to Argentina's import restrictions on Brazilian goods exported, Brazil's main trading partner for Argentina, it also puts restrictions on imported vehicles. These two major South American economies are currently working to resolve this conflict in trade ideology.