May 08, 2013

Honda to build new transmission plant in Celaya, Mexico

Honda de Mexico, S.A. de C.V. (HDM) announced plans to construct a new transmission plant in Celaya, near the city of Guanajuato, on the same site as the new automobile plant currently under construction that will begin production of the Honda Fit in Spring 2014.

With an initial
investment of US$ 470-million, the transmission plant will begin operation in the second half of 2015 with an annual production capacity of 350,000 units, with plans to more than double annual output in the coming years. Employment of 1,500 new associates is expected when the plant reaches its full production capacity of approximately 700,000 units annually.

By establishing a production base with outstanding global competitiveness in CVT manufacturing in the same location as the new automobile plant, Honda de Mexico will establish a highly efficient production structure that maximises local content in Mexico and the rest of North America.

The new transmission plant, Honda's third in North America, will produce continuously variable transmissions (CVTs) for automobiles built in Mexico, where further market growth is expected, as well as for other Honda auto plants in North America and globally. When the new transmission plant reaches full production, Honda's transmission capacity in North America will exceed 2-million units, and will support Honda's capacity to produce 1.92-million automobiles per year in the region.

"We are establishing a production base with outstanding global competitiveness in CVT production in the same location as our new automobile plant in Celaya," said Tetsuo Iwamura, COO of Honda North American Regional Operations. "As we continue to advance our commitment to build products close to the customer, we appreciate the strong support we have received here in Mexico."


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