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Honda to build new CVT plant in Mexico; initial capacity 350k units

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. 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.

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.

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.

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.

The new transmission plant in Mexico will join existing Honda transmission manufacturing operations in Ohio and Georgia, increasing Honda’s annual transmission production capacity in North America from the current 1.375 million units to more than 1.7 million units in 2016, and to more than 2 million units when the Mexican plant reaches full capacity.

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