Photo: Honda to Build New Automobile Plant in Mexico for Production of Subcompact Vehicles, Starting in 2014
Honda de Mexico, S.A. de C.V., (HDM), Honda’s production and sales company in Mexico, announced that it will build an automobile plant for production of fuel-efficient subcompact vehicles for the Mexican and North American markets. Honda will invest approximately US$800 million to build the plant, which is scheduled to begin operation in 2014.
Expected to employ approximately 3,200 associates at its full annual capacity of 200,000 units, the plant will occupy a 5.66 million square meters site in a suburb of Celaya, Guanajuato, about 210 miles east of HDM’s two existing plants in El Salto, Jalisco, which build automobiles, motorcycles and auto parts.
The new Honda plant will apply Honda’s advanced and highly efficient manufacturing system to produce vehicles and engines. By increasing use of local parts and materials, together with global parts sourcing, the new plant will provide customers with high-quality products at an affordable price.
The plant will be the eighth Honda auto plant in North America - and its 10th auto assembly line - and will boost Honda’s capital investment in its North American operations to nearly US$21 billion. Honda employs more than 33,000 associates in North America. Production operations related to automobiles include four auto plants, two auto engine production facilities and two transmission plants in the United States, two auto plants and an auto engine plant in Canada, and an auto plant in El Salto.
The new plant in Mexico will increase Honda’s automobile production capacity in North America from the current 1.63 million units to 1.83 million units in 2014. In 2010, more than 87 percent of Honda and Acura cars and light trucks sold in America were produced in North America.
“With growing demand for fuel-efficient vehicles, this plant will increase Honda’s ability to meet customer needs for subcompact vehicles from within North America,” said Tetsuo Iwamura, president of American Honda Motor Co., Inc. and chief operating officer for Honda’s North America Region. “This new plant will further strengthen the foundation of Honda’s North American business by enabling Honda to more flexibly respond to changing market conditions from within the region.”