Honda is pushing ahead with plans to produce compact cars in Argentina as it looks to boost sales in South America.
Last year the company postponed the opening of a new factory in Buenos Aires amid growing concerns that the financial crisis could drag down car sales in Latin America.
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However, sales in the region are recovering and are expected to continue to increase. The new plant will gave an initial annual capacity of 30,000 units. Honda already has a factory in Brazil and aims to export its cars to other countries in South America.
The US$100m plant was originally due to have opened earlier this year.
