Honda to make cars in Argentina

Honda Motor Co will invest $US100 million ($A115 million) to begin producing vehicles in Argentina, the country's acting economy minister, Miguel Peirano, told reporters.

Officials from Honda Argentina said they will start making compact cars in the second half of 2009. Peirano said the company will employ 800 workers at its new facility.

"Honda is based in just 16 countries and today it is coming to Argentina," Peirano said.

"This is the result of a solid domestic market, of the trust that our economic fundamentals generate and a dynamic of investments in the sector that will be sustained."

The automobile industry is booming in Argentina thanks largely to a weak local currency, which lowers production costs and makes exports from the South American country more competitive.

Consumer spending has also surged along with economic growth of at least 8.5 per cent in each of the last four years.

The former industry secretary, Peirano was named economy minister after his predecessor resigned. He is due to be sworn into office on Tuesday evening.

Source: AAP 2007

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