Honda says it is pushing back the start of production by at least six months at its first-ever Argentina assembly plant in response to rapidly dwindling global demand. The $100 million assembly plant was set to build up to 30,000 Honda products annually for the formerly growing markets of Argentina and Brazil beginning in late 2009.
“We have to adjust our production as demand in the global auto market continues to fall sharply,” Honda spokesman Hideto Maehara said. “Car sales have been very weak around the world, and we don’t really know when the market recovers.”
The Argentine factory will employ 800 workers, though Honda did not confirm how they will be affected by the delay. It’s unlikely the plant will begin producing vehicles prior to Spring of 2010.
