This excerpt taken from the HMC 6-K filed Sep 21, 2006.
Honda Holds Opening Ceremony of New Motorcycle Plant in Argentina
Buenos Aires, Argentina, August 2, 2006 Honda Motor de Argentina S. A. held the opening ceremony August 1, of its new motorcycle plant in the city of Florencio Valera, Buenos Aires. Argentine President Dr. Néstor Carlos Kirchner attended the ceremony, along with Tetsuo Iwamura, Managing Director and COO of the South America Regional Operation of Honda Motor Co., Ltd.
The new 7,000 m2 plant was built on a 68,000 m2 lot with a capital investment of approximately US$1 million. The plant has an annual production capacity of 15,000 units, with the potential to increase capacity to 45,000 units in the future with additional equipment and manpower. Beginning with the production of the C105 Biz (Cub type), a popular model in the local market, a second model will be introduced into production in the near future. The new plant began pilot production in late June, and is already operating at a mass production level.
The overall motorcycle market in Argentina has been growing rapidly since 2002, when the market size was approximately 13,000 units, and the total market reached approximately 187,000 units in 2005, a 192% increase from 2004. Hondas sales reached approximately 41,000 units in 2005, an increase of 123% from approximately 18,000 units in 2004. Honda plans to sell 70,000 units in 2006. The motorcycle market in Argentina is expected to continue to grow and become the second largest motorcycle market in South America in the near future. Honda will continue its efforts to meet the needs of this growing market by providing high quality products to achieve customer satisfaction.