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Old 31 Mar 2012, 06:00 am
MummyChunk
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Default Honda announces Fit production moving to Mexico

Honda Begins Construction of New Auto Plant in Celaya, Mexico
$800 million Plant Will Produce Honda Fit Subcompact Model Starting in
Spring 2014

03/28/2012 - CELAYA, Mexico
Honda de Mexico, S.A. de C.V. (HDM) laid the foundation stone for the
construction of its new vehicle production plant in Celaya, Guanajuato
at an event attended by Felipe Calderon Hinojosa, president of Mexico
and Takanobu Ito, president & CEO of Honda Motor Co., Ltd. The
plant will begin operation in 2014 with production of the Honda Fit
subcompact model.

With this new facility in Mexico, Honda continues to advance its
commitment to invest and grow its operations in North America. With
growing demand for fuel-efficient vehicles, the new plant will
increase Honda's ability to meet customer needs for subcompact
vehicles from within North America.

Expected to employ approximately 3,200 associates 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," Ito
said.

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," he said.

The new plant will occupy 5.66 million-square meters 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 apply Honda's advanced and highly efficient
manufacturing system to 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 associates 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 percent 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.

Emphasizing Honda's commitment to environmental responsibility, 13 of
Honda's 14 North American manufacturing plants operating in North
America meet the ISO 14001 international environmental management
standard.
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