Honda begins Fit production at new $800M plant in Mexico

February 26, 2014
Honda has announced that it has begun manufacturing its 2015 Fit subcompact hatchback at a new manufacturing facility in Mexico.

Located in the city of Celaya in North-Central Mexico, the new plant is active less than two years after construction began in 2012, at a total cost of $800 million. It will eventually employ 3,200 workers, with an annual capacity of 200,000 vehicles later this year.

Our new plant in Mexico is based on the Honda Company Principle of maintaining a global viewpoint to supply products of the highest quality, yet at a reasonable price, for worldwide customer satisfaction,” said Honda president and CEO Takanobu Ito.”In Celaya, we can see these core values in action, with a commitment to the highest quality and efficiency and a focus on creating joy for our customers.”

The company is also set to open a $470 million transmission plant in Celaya, where 1,500 workers will be tasked with producing continuously variable transmissions (CVTs) in the second half of 2015.

Mexico has experienced a boom in automotive production since the North American Free Trade Agreement was established two decades ago, as automakers flock to the country for its relatively cheap labor and geographical proximity to the US market.

A recent report forecasts that Mexico will quickly become the top car exporter to the US, knocking Japan out of the number-two spot by the end of the year and likely taking the top position from Canada by 2015.

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