Honda Buys Land in Mexico for New Plant

The Japanese auto maker is buying land in Mexico to make way for a new facility to not only produce cars, but maybe even more importantly, jobs.

The $800 Million Dollar facility in Celaya will be home to the next generation Honda Fit for all suppliers in North America, mainly the US and Canada. Honda may add Fit Hybrid and Fit Electric to these assembly lines by 2014.

This is not the first time Honda has invaded this Mexico - they have a plant 210 miles away in El Salto. That facility builds vehicles for sale at Barber Honda in Bakersfield, California.

Celaya's plant will produce an annual vehicle capacity of 200,000 units. The factory will also boost total North American capacity from 1.63 million vehicles to 1.83 million units - spread throughout eight assembly lines: 4 in the US, 2 Canadian, and now 2 in Mexico.

Inside Line reminds us of the power Honda has in North America: "Honda says that more than 87% of the cars and trucks it sells in North America are produced locally. The new plant could boost that to more than 90%."1

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