Honda moving distribution centre

Honda New Zealand has announced it is moving its national distribution centre from Nelson to Auckland to reduce transit times and overall handling costs for delivering new vehicles.

The marque has had a Nelson base for nearly four decades after it purchased the Nelson Motor Vehicle Assembly Plant in Annesbrook in 1988.

The production facility closed 10 years later but Honda remained in Nelson and its distribution operations moved to the company’s current 2.34-hectare site in Wakatu Industrial Estate in 2001, reports Top South Now.

Honda NZ says the decision to relocate its pre-delivery inspection and related distribution activities was made after a review of its new-vehicle distribution model.

“Auckland offers advantages through port access, transport networks, and proximity to the highest concentration of vehicle sales and dealer activity, helping reduce transit times and overall handling costs while supporting the long-term sustainability of the business,” a company spokesperson told Top South Now.

They would not specify how many employees will be affected by the move and add no decision has been made on the future of the Nelson site. A timeline for shifting operations has also yet to be confirmed. 

Honda notes it will retain its sales, parts and service operations on Elms St, Nelson.

Nick Smith, Mayor of Nelson, posted on Facebook that the announcement was “bad news”.

“The decision is driven by most of Honda’s car sales being in the North Island and the logistical and transport advantages of being in Auckland,” he writes.

“It is part of a worrying global trend of businesses basing themselves in major cities for scale and centralisation.

“I am concerned for the staff, many of whom have worked for Honda for decades. I am engaging with MSD [Ministry of Social Development] about providing support and helping them find new employment.”