Honda de Mexico, S.A. de C.V. has begun construction of a new plant in Central Mexico – making the Japanese maker just the latest to take advantage of Mexico’s low wages and strategic location.
The new plant will begin operation in 2014 with production of the Honda Fit subcompact model, said Takanobu Ito, president & CEO of Honda Motor Co., Ltd.
Honda’s announcement comes barely two months after Nissan revealed plans for a massive, $2 billion assembly complex in Aguas Calientes, in Central Mexico – with Mercedes-Benz also considering construction of a new plant not far from the Nissan site.
With this new facility in Mexico, Honda continues to advance its commitment to invest in and grow its operations in North America, Ito said. With growing demand for fuel-efficient vehicles, the new plant will increase Honda’s ability to meet customer needs for subcompact vehicles from within North America.