Honda has announced plans to build a second car factory in Brazil doubling its annual capacity in the country to 240,000 units.
The new plant, in Itirapina, Sao Paulo state, is about 100km (60 miles) north west of its existing factory in Sumare. It is scheduled to come on stream in 2015 and will build the compact Fit (Jazz in some markets). Honda says the plant will cost BRL1bn (US$434m) and employ 2,000.
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Honda has also announced that it will establish a new R&D centre at its existing Sumare plant by the end of this year “to strengthen local development capabilities and to enhance parts localisation.”
“As the world’s fourth largest automobile market, Brazil is a very important market for Honda’s operation in South America,” said Masahiro Takedagawa, Honda’s COO for South American regional operations.
