Forgot your account information?  |  Create a CME account

Honda to build new Mexico plant

Published by Steve Coleman on August 12, 2011

Honda's North American plans now include a Mexico assembly plant scheduled to begin operation in 2014.

The Japanese automaker announced Aug. 12 that it will open a new manufacturing plant in a 5.66 million square metre site in Guanajuato - a suburb of Celaya - about 340 km east of its two existing facilities in El Salto, Jalisco.

Honda currently builds cars, motorcycles and auto parts at its current Mexican production lines.
The plant will be the eighth in North America and its tenth assembly line. The US$800 million plant will boost Honda's investment in its North American operations to an estimated US$21 billion. The car maker employs more than 33,000 in North America.

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.

"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 in a release announcing the expansion plans. "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."

Besides announcing its Mexican expansion plans, the company also says things are returning to normal at its existing operations after the Japanese earthquake and tsunami.

Honda of Canada'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. The return to normal follows a May decision to consolidate its operations into a single shift to make up for parts shortages after the March 11 earthquake and tsunami.

In May, the plant consolidated its two shifts into one-shift operation to cope with parts supply issues after the quake.

Found in: news

National Office

Alberta British Columbia
Manitoba New Brunswick
Newfoundland & Labrador Nova Scotia
Ontario Québec
Prince Edward Island Saskatchewan