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Friday
Aug122011

Honda to add $800 million plant in Mexico

Honda plans to build an automobile plant in Mexico 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.

The plant, expected to employ approximately 3,200 at its full annual capacity of 200,000 units, will be built in Guanajuato. The new plant, Honda's eighth in North America, will increase Honda's ability to provide subcompact cars from within North America and "flexibly respond to changing market conditions from within the region," a Honda spokesman said. It will also 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 two auto plants and an auto engine plant in Canada; four auto plants, two auto engine production facilities and two transmission plants in the United States; 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 94 per cent of Honda and Acura cars and light trucks sold in Canada were produced in North America, while 87 per cent of vehicles sold in the U.S. were built in North America.

In North America, Honda produces global models such as Civic, Accord and CR-V as well as region-specific light truck models including the Odyssey and Pilot. The smallest automobile currently produced by Honda in North America is the compact Honda Civic, which is built at Honda assembly plants in Ontario and Indiana.

In addition to the new auto plant in Mexico, Honda recently announced plans to expand production at several of its plants in Canada and the U.S.:

 

  • Honda of Canada Mfg's Plant 1, which builds the Civic Sedan, Civic Coupe, Civic Si coupe and Civic Si sedan, will return to full, two-shift operations in September. In May, the plant consolidated its two shifts into one-shift operation to cope with parts supply issues following the earthquake in Japan.
  • In the U.S., the Honda plant in Greensburg, Indiana, which builds the Civic Sedan and Civic Natural Gas vehicle, will add a new second shift in October of this year.
  • The Marysville, Ohio, auto plant which builds the Accord Sedan and Accord Coupe as well as the Acura TL, will reinstate second-shift production on Line 1 by the end of 2011, returning to full, two-shift production for the first time since January 2009.

 

The Mexican plant will employ advanced methods of energy and emission reduction with the goal to become a "zero waste-to-landfill" factory. Already, Honda has 10 zero waste-to-landfill plants in North America, with four more operating with virtually zero waste-to-landfill, including the two existing plants in Mexico.

Further, every major Honda plant in North America has met the ISO 14001 international environmental management standards, except the new auto plant in Indiana which is now working toward certification.

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