Honda to downsize Spanish factory
Posted: 15 November 2009 1603 hrs

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TOKYO : Japanese auto giant Honda Motor has decided to scale down its Barcelona factory in a bid to overhaul its motorcycle operations in Europe, a report said on Sunday.

The Spanish factory, which has annual output capacity of 50,000 units, would stop making motorcycles at the end of March, the Nikkei newspaper said.

These operations would then be gradually transferred to an Italian plant that now rolls out 170,000 units a year, it said.

The Spanish factory would however continue making parts after March, the newspaper said.

Honda has been focusing resources on emerging markets such as India, where its bikes continue to sell well, while motorcycle sales fall in Japan, Europe and the United States. - AFP/ms