Portuguese 
English 
Spanish 
3 min of reading 
Atsuhi Fujimoto, New President of Honda in South America, Announced the Reduction in Automobile Production in Factories in Brazil
Under the leadership of the new president of Honda in South America, the company announces its intention to reduce automobile production in its Brazilian factories. By the end of the year, there is a likelihood that the multinational will no longer manufacture the Sedan Civic and the Hatch Fit.
Read Also
Reduction of the Multinational Honda in Brazilian Factories
According to Fujimoto, Honda’s new products are expected to meet the multinational’s global standards in safety, environment, and connectivity. Thus, the idea is for the executive’s first step to utilize more efficient engines in the automobiles.
In his first meeting with journalists, he stated that new investments will be applied to the planned launches; however, he did not disclose the amounts nor the models that will receive the investment, avoiding confirming or denying information that, by the end of the year, the company will stop producing the Sedan Civic and the Hatch Fit, and, in return, launch the new City.
-
China is building 5 cascade dams for $167 billion in Tibet — and the Motuo Project will have 70 GW of capacity, three times more than the world’s current largest power plant.
-
Saudi Arabia will build a US$ 490 million cultural mega-project in Diriyah, with a 45,000 m² modern art museum in the historical cradle of the Kingdom to transform the city into a global showcase of art and architecture.
-
The R$ 19 million project for the BR-282 overpass in SC reaches 80% completion with delivery scheduled for July 2026, according to DNIT, but the highway that cuts across Santa Catarina from the coast to the West needs more.
-
Is Amazon becoming a “global post office”? Big Tech opens its logistics to any company, puts more than 100 planes and warehouses on the market, and makes UPS and FedEx lose about 10% on the stock market by raising the delivery dispute to a new level.
The executive added that the multinational Honda still intends to continue operating in Brazil with its two factories in Sumaré and Itirapina, which have the capacity to produce 240,000 automobiles per year. According to him, this is more than enough for what the company needs.
Honda Automobiles and Their Space in the Market
With few impactful launches and production from factories below demand, the multinational’s line of automobiles began to lose market share. In 2020, the automaker sold about 84,000 automobiles in Brazil, a drop of approximately 35% compared to 2019. Even with this decline, the sales figure is still much higher than the market average, which is around 27%, allowing the multinational to reach the ninth place among the best-selling brands.
This year, there was a 20% increase in sales, and 33,700 cars have been registered from January to May; however, it is still a number below the average growth. Fujimoto acknowledges the poor performance of the automaker and states that it was a global problem for Honda, which in recent years has undergone a restructuring to recover its profitability, leading to the closure of some factories worldwide.
Difficult Times for Honda in Brazil
Fujimoto has been with the multinational since 1986, working in sales and product planning areas. In addition, he has work experience in Asia, where he led operations in China, Malaysia, and Thailand.
This is his first time serving in South America, and the president recognizes the difficulties faced in the region. He states that he arrived at a special moment as the company celebrates 50 years of operations and is aware of the Brazilian economy. “There are challenges but also opportunities. We just need to be cautious,” he said.
Be the first to react!