Honda has announced it will be relocating its national distribution facilities to Auckland, marking the end of an era for the Nelson-based yard.
Honda New Zealand first purchased the Nelson Motor Vehicle Assembly Plant in 1988, when it was located in Annesbrook.
Honda then invested heavily, including millions on a new paint shop in 1991, and in 1995 added an engine assembly line, the first and only one in New Zealand.
However, the National Government’s 1997 decision to remove tariffs on imported vehicles rendered the plant unviable. After 33 years of production, it closed on 21 August 1998. Around 4,500 people had worked at the plant over its lifetime, producing 160,406 vehicles.
While assembly ended, Honda’s presence in Nelson continued. In 2001, distribution operations moved to the company’s current 2.34ha site in Wakatu Industrial Estate.
A Honda New Zealand spokesperson says the Nelson team has made a “significant contribution” to Honda New Zealand over many years, both during local assembly operations and throughout the distribution era that followed.
They say the decision to relocate was made after a review of the company’s new vehicle distribution operating model, which confirmed that transitioning pre-delivery inspection and related distribution activities to an Auckland-based model would provide greater operational and logistical efficiencies.
“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.”
The spokesperson says they have not yet made any decisions on the future of the 2.34ha site.
“The site has been part of Honda’s presence in the region for many years, and any future decisions would be considered carefully as part of broader business planning.”
The timeline for a full relocation will align with operational requirements during the transition period, including remaining vehicle shipments currently scheduled through Nelson.
“The transition will be phased to ensure operational continuity and support employees through the change process.”
Honda will retain its sales, parts and service operations at its neighbouring 10 Elms St property.
The spokesperson would not specify exactly how many employees would be affected by the decision “out of respect for employee privacy and ongoing employment matters”.
“As part of this project, Honda has carefully considered the impact on our people. We explored redeployment opportunities and confirmed a staffing approach that includes fixed-term transition support roles to support business continuity and effective handover during the transition period.
“In addition, opportunities are being offered within the Nelson retail operation, which remains open and fully operational.
“We also appreciate the history of Honda’s operations in Nelson and the important role the region has played in Honda New Zealand’s story over many decades. While distribution activities are transitioning, the Nelson Sales and Service operation remains open and continues to support local customers with sales, servicing, and parts.”
