Honda will Construct New Automobile Plant in Mexico to Produce Fuel-Efficient Sub-Compact
Production and sales company of Honda in Mexico has recently publicized that it will construct a vehicle plant in order to manufacture sub-compact vehicles (fuel-efficient) for the people of Mexico and North America. Honda has planned to endow US $800 million to construct this plant and it will be functional in 2014. Honda has also announced to inflate production in different plants of U.S and Canada. President of America Honda Motor Co, Inc. and Chief Operating Officer for North America Region of Honda, Tetsuo Iwamura said, “With growing demands for fuel-efficient vehicles this plant will increase Honda’s ability to meet customer’s needs for sub-compact vehicles from within North America. This new plant will further strengthen the foundation of Honda’s North America Business by enabling Honda to more flexibly respond to changing market conditions from within the region.”
At the full annual capacity, this plant for sub-compact vehicles is anticipated to use round about 3,200 associates and will dwell in site of Suburb of Celaya with 5.66 million square meters. This site is almost 210 miles away from the 2 current plants of Honda Division Motors which manufactures auto parts, motorbikes and vehicles i.e. El Salto, Jalisco.
Honda’s seven plants are already working in Mexico and it will be the 8th one in North America, this plant will make use most up to date and highly efficient manufacturing system of Honda to manufacture engines and vehicles. With the enhanced use of local plants along with sourcing of global parts this plant will offer finest products at reasonable prices to the consumers. Vehicle production capacity of Honda will be improved when this plant will work at its full capacity and in 2014 it will improve from 1.6 million units to 1.83 million units. Last year, above 87% of Honda and Acura cars and light weight trucks which were sold in America were manufactured in North America.
Honda manufactures global models like Civic, Accord, SR-V and light trucks which includes Pilot and Odyssey in North America. Compact Honda Civic is the smallest vehicle that Honda manufactures in North America. Honda will make a noteworthy assurance to limit the environmental influence of the new plant in Mexico. The new plant will use latest methods of energy and emission decrease with the aim to become a “zero waste-to-landfill” factory. Right now in North America, Honda has 10 zero waste-to-landfill plants along with 4 more operating with almost zero waste-to-landfill which also includes the two prevailing plants in Mexico.