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Honda Begins Construction of New Transmission Plant in Mexico

Admin | 24.09.2013

Honda de Mexico (HDM), the Mexican arm of Japanese carmaker Honda, has started the construction of a new transmission plant in Celaya, Mexico, with an initial investment of $470m.

Honda de Mexico (HDM), the Mexican arm of Japanese carmaker Honda, has started the construction of a new transmission plant in Celaya, Mexico, with an initial investment of $470m.

The new facility will be located adjacent to the new $800m automobile plant that will begin mass production early next year of the all-new 2015 Honda Fit.

In the second half of 2015, the transmission plant will produce continuously variable transmissions (CVTs) with an initial production capacity of 350,000 units per year.

The company also plans to double the annual CVTs produced in Celaya to approximately 700,000 in the future, when the workforce at this plant is expected to reach 1,500. In addition to catering to HDM auto production, the plant will provide transmissions to Honda auto plants outside Mexico.

Honda North American Regional Operations COO Tetsuo Iwamura said: "With the growing skills of our new associates in Mexico we are establishing a new production base that will achieve outstanding global competitiveness."

Honda will also manufacture automobiles for all sales segments, from sub-compact to light truck models in North America after the production begins at the Mexican plant in 2014.

This new plant will join the existing Honda transmission manufacturing operations in Ohio and Georgia, which will increase the production capacity in North America to more than 1.7 million units in 2016. When the Mexican plant reaches full capacity, the transmission capacity will be more than 2 million units.

Honda will have a workforce of 4,700 in Celaya when the auto, engine and transmission plants are in full operation.

By setting up a production base for CVT manufacturing in the same location as the new automobile plant, Honda de Mexico will operate a highly efficient production structure that maximizes local content in Mexico, the rest of North America and globally.

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