New Honda Automobile Plant in Mexico to Start Production in 2014

Japanese automaker Honda recently announced it will build an automobile plant for production of fuel-efficient subcompact vehicles for the Mexican and North American markets. This will require an investment of about USD800 million, with production there to begin in 2014.

The new facility will reportedly employ approximately 3,200 people at its full annual capacity of 200,000 units. The plant will spread over 5.66 million sqm and will be located in a suburb of Celaya, Guanajuato.

This will increase Honda's automobile production capacity in North America from the current 1.63 million units to 1.83 million units in 2014.

“The new Honda plant will apply Honda's advanced and highly efficient manufacturing system to produce vehicles and engines. By increasing use of local parts and materials, together with global parts sourcing, the new plant will provide customers with high-quality products at an affordable price,” a company statement reads.

The new plant will also employ advanced methods of energy and emission reduction with the goal to become a "zero waste-to-landfill" factory.

"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. "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."