Honda opens new factory in Mexico to build the Fit for the U.S. market

Article by Christian A., on March 30, 2012

Honda Motor Co. had a ceremony last Wednesday to break ground on a project for a new plant in Mexico that will produce the Fit small car, which will be exported to the U.S. as well as other markets. At the same time, it is expanding its local production footprint to fight the strengthening yen (which has been eating up profits).

This plant located near Celaya, Guanajuato, will start to operate in 2014 with a 200,000-vehicle capacity each year. Honda first mentioned this plant in August but back then, it declined to say what model will be produced there. In a statement, Honda said that this plant will boost Honda's production capacity in North America to 1.87 million units by the early part of 2014 from the current 1.63 million figure.

This new factory will have 3,200 workers. Honda made an announcement last January that it will produce the next generation Acura NSX sports car in Ohio. This car will start selling by the end of 2014. Rick Schostek, senior vice president of Honda of America Manufacturing Inc., said that Honda will soon have production lines in North America for various vehicles, ranging from subcompacts to super cars.

He said that in 2011, over 85% of the Honda and Acura models sold in America were assembled in the U.S., Canada and Mexico, with the use of parts sourced both domestic and globally. In the upcoming years, this will reach over 90%.

As Honda battles the yen’s strength against the dollar and euro, it is transferring more output outside Japan. The increase of the yen reduces profits and compromises the pricing power of Japan-built cars sold overseas. In the U.S. alone in 2011, 59,235 Fit units were sold by American Honda – 9% higher than 2010 sales.

If you liked the article, share on:

Comments

Recommended

We’re willing to bet that the Bentley Bentayga is not the first thing that comes to mind for most people who are into off-roading and outdoor activities. It just doesn’t...
by - November 23, 2017
The other day, it was confirmed that Volvo will finally bring the XC40 to US soil, where it will first make an appearance at the 2017 Los Angeles Auto Show....
by - November 23, 2017
There is no question that the new BMW M5 (F90) high performance sports sedan is more powerful, faster and more enticing than the previous model. But for interested customers in...
by - November 23, 2017
Following the Tesla Roadster’s electrifying revelation on Thursday, Musk’s highly ambitious goals have skyrocketed when he tweeted about his future plans for the new sports car. Well, kind of. The...
by - November 23, 2017
Earlier in November at the 2017 SEMA Show in Vegas is when Hennessey unwrapped the Venom F5 to all of us. But it was actually first introduced as a concept...
by - November 22, 2017
Facebook

Youtube Channel

Tip Us
Do you have a tip for us?
Did you film an important event?
Contact us
Newsletter
Subscribe to our newsletter!
Subscribe
Galleries