Honda has broken ground on its $470-million transmission plant in Celaya, Mexico, which is expected to commence operations in the second half of 2015. The site will have an initial annual output capacity of 350,000 units and will surge to around 700,000 units. According to Honda, the new Celaya transmission site will result in the creation of around 1,500 new jobs.
The site will supply transmissions not only for its Mexico operations, but also for site outside the country. The Celaya transmission site will focus on producing continuously variable transmissions. It will help boost Honda’s North American annual transmission production from about 1.4 million to more than 1.7 million units in 2016. The carmaker also has transmission plants in Ohio and Georgia in the United States.
The transmission plant is being constructed next to the new $800-million assembly plant that will start producing 2015 Honda Fit in the first half of 2014. Tetsuo Iwamura, Chief Operating Officer of Honda North American regional operations, said in a statement that that carmaker is “establishing a new production base that will achieve outstanding global competitiveness.”
"Our ability to begin operations would be impossible without the enthusiasm and support of the community, and I want to thank the state and federal governments for their efforts to help ensure the success of our operations," said Tetsuo Iwamura, COO of Honda North American Regional Operations."With the growing skills of our new associates in Mexico we are establishing a new production base that will achieve outstanding global competitiveness." [source: Honda]