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Honda Plans Mexico Plant
Honda Motor Co. will build an $800 million plant in Mexico to make subcompact cars for the North American market, the company said Friday.
The new plant, near Celaya, Guanajuato, is scheduled to open in 2014 and employ 3,200 workers. It will be capable of building 200,000 vehicles a year.
Honda didn't name the vehicle that would be built in Mexico, but the only subcompact the company sells in the U.S. and Canada is the Fit, which is now built in Japan. Honda executives have said they are seeking to move some production out of Japan because the strength of the yen makes it difficult to make money on exports.
The plant will be the eighth Honda auto plant in North America and will increase Honda's production capacity in North America to 1.83 million from 1.63 million. In 2010, more than 87% of Honda and Acura cars and light trucks sold in the U.S. were produced in North America. Building the car in Mexico also would allow Honda to export the vehicle to South America without facing trade tariffs.
"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. in a statement.
Honda Motor Co. will build an $800 million plant in Mexico to make subcompact cars for the North American market, the company said Friday.
The new plant, near Celaya, Guanajuato, is scheduled to open in 2014 and employ 3,200 workers. It will be capable of building 200,000 vehicles a year.
Honda didn't name the vehicle that would be built in Mexico, but the only subcompact the company sells in the U.S. and Canada is the Fit, which is now built in Japan. Honda executives have said they are seeking to move some production out of Japan because the strength of the yen makes it difficult to make money on exports.
The plant will be the eighth Honda auto plant in North America and will increase Honda's production capacity in North America to 1.83 million from 1.63 million. In 2010, more than 87% of Honda and Acura cars and light trucks sold in the U.S. were produced in North America. Building the car in Mexico also would allow Honda to export the vehicle to South America without facing trade tariffs.
"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. in a statement.