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15 2.18 to 2.23.2019 AutoData News Agency Weekly Edition is produced by AutoData Editora Ltda . Rua Pascal, 1693 Campo Belo - São Paulo SP Brazil CEP 04719-001 Phone +55 11 5189 8900 . Translation: Pablo Blas. Graphic Project/Art: Romeu Bassi Neto. Associated Team: André Barros, Bruno de Oliveira, Caio Bednarski, Leandro Alves, Márcio Stéfani. Responsible previous permission are strictly forbidden. The works in the units are already in process with the construction of the new building that will house engine production, improving logistics and reducing production time, according to vice president Julio Koga: “Processes for engines production are far apart and this takes up a lot of time and logistics expenses. Now, with the new building, the idea is to cut this time by half, therefore improving the productive flow and logistics”. The transfer to the new building will be gradual, for the company will not interrupt production at any time. It will start in the first half with the foundry and in the second half with the machining. The timetable calls for the implementation of all the changeover and initiate production of engines in the new building in 2020. As to the installed production capacity and jobs generation president MIzoguchi said that, initially, there will be no changes: the investment is intended to improve processes and to increase plant efficiency: “We still are running excess capacity, and our current staff can handle the foreseeable demand”. The unit employs 6 thousand people and, in the 2011 production peak, it moved over 7 thousand motorcycles/day. Production is divided in 5 lines that produce about 3.7 thousand motorcycles/day. Four of these run one shift and the line that produces CG and Pop operates two shifts. For this year Moto Honda projects a production increase of 5% - in 2018 they produced 780 thousand units, a growth rate of 17% as compared to the prior year. It was the first year production increased since 2011. “Sales must go hand in hand with production, as a full 95% of what we produce goes to the local market. We would like this number to be smaller and to export more, but the cost of producing in Brazil makes the increase in exports difficult”.

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