Honda NZ to close National Distribution Centre in South Island

After 25 years of operations, Honda New Zealand’s National Distribution Centre in Nelson has been slated for closure. 

The news was confirmed by Nelson mayor Nick Smith, with the former National Party member saying the decision was “part of a worrying global trend of businesses basing themselves in major cities for scale and centralisation”. 

The 2.34ha site handles pre-delivery inspection and the production of customised vehicles for Honda’s local partner companies, as well as servicing and other distribution duties for the brand. These tasks are now set to be shifted to a site in Auckland. 

In a statement issued to Top South Now, a Honda New Zealand representative said that moving these operations to Auckland “offers advantages through port access, transport networks, and proximity to the highest concentration of vehicle sales and dealer activity.” 

This will help “reduce transit times and overall handling costs while supporting the long-term sustainability of the business.” 

In a post shared on social media, Nelson mayor Nick Smith said the update 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. It is part of a worrying global trend of businesses basing themselves in major cities for scale and centralisation,” said Smith.

The mayor noted that many of the location’s staff “have worked for Honda for decades”, and noted he is discussing their futures with the Ministry of Social Development. 

“There is a flow-on effect for the wider community and Councils. The imported new and used cars from Honda make up about half of the vehicles coming into Port Nelson, and will result in a small loss of about $150k revenue per year, which will impact on both Nelson and Tasman Councils as joint shareholders,” Smith added.

Honda’s association with the Nelson region runs deep. The Japanese marque started assembling cars in Nelson in 1980 (specifically the Civic). It even introduced a short-lived engine assembly line in the 1990s.