Honda starts construction of CVT plant in Mexico
Honda has broken ground for its new transmission plant in Celaya, near Guanajuato in Mexico. This plant is expected to have an initial production capacity of 3,50,000 Continuously Variable Transmissions (CVTs) units per annum which will later increase to 7,00,000 units per annum. Honda Mexico expects production to start in the second half of 2015. The manufacturer is likely to hire around 1,500 workers for this new transmission plant.
Tetsuo Iwamura COO of Honda North American Regional Operations addressing the audience at the inauguration of the new plant
This $470 million (Rs 2,944 crore) transmission plant is being built near its $800 million (approximately Rs 5,000 crore) car assembly plant, which is also under construction currently. This car assembly plant is expected to produce the 2015 Honda Fit (Jazz) from 2014 onwards. Honda has stated that this new transmission plant will supply transmissions for both its Mexico car plant and also those which are located in other countries. Honda currently has two assembly plants in Canada and four in USA. During the past three years, Honda has invested around $2.7 billion (roughly Rs 16,915 crore) towards expanding its business in North America.
The layout of the new Honda CVT plant in Mexico
"With the growing skills of our new associates in Mexico we are establishing a new production base that will achieve outstanding global competitiveness. By establishing a production base for CVT manufacturing in the same location as the new $800 million auto plant, Honda de Mexico will operate a highly efficient production structure that maximises local content in Mexico, the rest of North America and globally," said Tetsuo Iwamura, COO of Honda North American Regional Operations, in a statement.
Honda's new Mexican transmission plant will increase Honda's North American annual transmission production capacity to more than 17 lakh units from the current 13.75 lakh units. Once the Mexico plant is completely operational, annual production capacity will increase to over two million units. Honda currently has manufacturing plants in Ohio and Georgia. The CVTs manufactured at the Celaya plant will comprise Honda's new 'Earth Dreams Technology', which claim to achieve efficiency and performance.
