Honda Automóveis do Brasil (HAB) has opened its new research and development centre in Sumaré following a spend of BRL100m.

The unit develops models to meet the needs of the Brazilian market and works on localisation of components and technologies. The unit began operations with approximately 300 employees who work in engineering, purchasing and research & development.

Honda’s had an assembly plant in Brazil since 1997 and, since 2008, when it began producing engines in Brazil, the company already had laboratories for engine tests in Sumaré. In this expansion, a new laboratory was built and equipped with two chassis dynamometers and pollutants emissions system. The equipment will contribute to the development of components, engines and transmission systems, besides conducting durability test, emissions and consumption measurement.

Other structures and technologies, such as the system of dimensional measurement, which contributes to the development of items for the exterior and interior of the vehicle, and the laboratory of materials, which allows validation of raw materials and local components, make the new unit one of the main Honda R&D centres outside Japan/US.

The new unit is aligned with the automaker’s global strategy to promote simultaneous development in the various regions of the world to provide global products with local differentials.

Unique local models already developd locally, like the Civic 2.0 FlexOne, Fit [Jazz] Twist and City Sport, will be followed up with redesigned Fit, City and compact SUV models with modified powertrains and suspension plus new technologies for the local market developed by the new centre.

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“The decision to strengthen our R&D capabilities reflects our commitment to develop products that meet the expectations of the Brazilian customers. Our goal is to increase the level of components localisation in the next two years and to develop new versions and specific models for our market,” said Luis Gazzola, HAB’s general manager of research and development.

Bet on Brazil

Honda is betting on the realignment of its business in Brazil to accelerate the development, production and marketing of new products with more competitive prices for Brazilian buyers. HAB announced last year the construction of its second factory in the city of Itirapina, in São Paulo state, with production capacity of 120,000 cars per year. The new plant will start operations in 2015.

In 2013, the company made other important announcements. Aiming to accelerate the processes of decision making and to gain agility and competitiveness, Honda South America (HSA) decided to focus on a single location, in the plant of Sumaré, the board and all HAB´s departments. Based on the global concept of ‘one floor’, used in the Japanese headquarters, the project provides greater proximity of administrative and industrial areas.

Honda has also previously announced the construction of a wind farm in the city of Xangri-lá, Rio Grande do Sul, which will supply the entire electricity demand of its first automobile factory. The initiative, an innovation amongst automakers present in the country, will also have an initial investment of BRL100m.

The wind farm, which will begin operations in September, is run by Honda Energy do Brasil, a new HAB subsidiary.