02 May 2013

Honda Plans New $470 Million Transmission Plant in Celaya, Mexico

Celaya, Mexico – 02 May 2013 - Honda de Mexico, S.A. de C.V. (HDM) 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 maximizes 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.” 

Honda established its first Mexican manufacturing operations in September 1985. Two years later, Honda de Mexico started motorcycle import sales and, in March 1988, began production of motorcycle products and automobile service parts in El Salto, Jalisco. Automobile production began in 1995 with the Accord and, in 2007, production switched to the CR-V. Honda de Mexico has a current annual capacity of 63,000 automobiles. 

With the new 200,000-unit Celaya automobile plant scheduled to begin operation in February 2014, Honda de Mexico’s annual production capacity will increase to a total of 263,000 units. In 2012, Honda sold 54,000 units in Mexico (up 150.6% from a year ago), with sales volume steadily increasing. 

Honda established operations in America in 1959, and now employs more than 33,000 associates in its North American sales, R&D and manufacturing operations with a capital investment of more than $22 billion. 

Source: Honda