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Atsuhi Fujimoto, new president of Honda in South America, said the reduction in car production in factories in Brazil
In leadership of the new president of Honda in South America, the company announces that it intends to reduce the production of automobiles in its Brazilian factories. By the end of the year, there is a probability that the multinational will no longer manufacture the Civic Sedan and the Hatch Fit.
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Reduction of the multinational Honda in Brazilian factories
According to Fujimoto, Honda's new products intend to meet the multinational's global standard in safety, environment and connectivity. Therefore, the idea is that the executive's first step is to use more efficient engines in cars.
In his first meeting with journalists, he stated that new investments will be applied in the planned launches, however, he did not reveal which values or models will receive the investment, avoiding denying or affirming the information that, by the end of the year, the company will stop manufacturing the Civic Sedan and the Fit Hatch, and instead launch the new City.
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The executive added that the multinational Honda still intends to continue operating in Brazil with the two factories in Sumaré and Itirapina, which have the capacity to produce 240 cars per year. According to him, it is more than enough for what the company needs.
Honda cars and their space in the market
With few launches of expression and factory production below demand, the multinational's line of cars began to lose space. In 2020, the automaker sold around 84 cars in Brazil, a drop of approximately 35% compared to 2019. Even with this drop, sales are still much higher than the market average, which reaches 27%, making with the multinational reaching the ninth place among those that scored the most.
This year, there was a 20% expansion in sales and 33,7 cars were already licensed from January to May, but even so, it is a number below the average growth. Fujimoto recognizes the automaker's weak performance and claims that it was a global problem for Honda, which in recent years has undergone restructuring to recover its profitability, which has led to the closure of some factories in the world.
Difficult times for Honda in Brazil
Fujimoto has been working at the multinational since 1986, working in the areas of sales and product planning. In addition, he has work experience in Asia, where he led China, Malaysia, Thailand.
This is his first time acting in South America, and the president recognizes the difficulties that are going on there. He says he arrived at a special time when the company is celebrating 50 years of operations and is aware of the Brazilian economy. “There are challenges, but there are also opportunities. We just need to be cautious,” he said.
