Honda begins construction of new $800 million auto plant in Celaya, Mexico
May 14, 2012
Honda de Mexico, S.A. de C.V. (HDM) has begun work constructing its new vehicle production plant in Celaya, Guanajuato following a ceremony attended by Mexico’s President, Mr Felipe Calderon Hinojosa and the President & CEO of Honda Motor Co., Ltd., Mr Takanobu Ito.
The plant will begin operation in 2014 with production of the Honda Fit subcompact model. Expected to employ approximately 3,200 at its full annual capacity of 200,000 units, the new Honda de Mexico plant in Celaya will produce the Honda Fit subcompact model both for the Mexican market and for the U.S. and Canadian markets, as well as other regions.
“Considering the needs of the Mexican market, which is expecting continued growth in the future, and also serving as a global production base for the North American region and beyond, we decided to make the Fit the first product to be produced here,” stated Ito.
“Also, we will create a highly efficient production system that allows us to provide high quality products at an affordable price both by expanding the use of local parts and by utilizing global parts sourcing,” Ito added.
The new plant will occupy 5.66 million square metres near Celaya, Guanajuato, about 210 miles east of two existing HDM plants in El Salto, Jalisco, which build automobiles, motorcycles and auto parts.
The Celaya plant will produce both vehicles and engines. The new Honda plant will be the company’s eighth auto plant and its 10th auto assembly line in North America. The new plant will boost Honda’s capital investment in its North American operations to nearly US$21 billion.
Honda employs more than 33,000 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. In addition, Honda has 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 1.63 million units to 1.87 million in spring 2014. In 2011, more than 85% of the Honda and Acura cars and light trucks sold in the U.S. were produced in North America. In addition to region-specific models, including the Honda Odyssey, Pilot and Ridgeline, and the Acura TL, MDX and RDX, Honda produces key global models such as the Honda Civic, Accord and CR-V in North America. The addition of Fit production in Mexico means Honda will produce all four of its global models in North America.
Posted by: Paul Whittaker, Editor ipmd.net, [email protected]
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