Hampered by a strong yen when it exports vehicles from Japan, Honda (Tokyo) has opted for a major investment in Mexico for its next assembly operation to serve the North American market. The company is investing around $800 million to build the plant, which is scheduled to begin operation in 2014.
Expected to employ approximately 3,200 at its full annual capacity of 200,000 units, the plant will occupy a 5.66 million square meters site in a suburb of Celaya, Guanajuato, about 210 miles east of HDM's two existing plants in El Salto, Jalisco, which build automobiles, motorcycles and auto parts. The new plant will reportedly manufacture the subcompact Fit model among others.
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 reportedly provide customers with high-quality products at an affordable price. The emphasis on local sourcing will be a boon for local processors....