Honda Breaks Ground on Transmission Factory in Mexico

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has broken ground on a new transmission factory for $470 million in Celaya, Mexico, next to Honda’s vehicle plant that is gearing up to build the next generation Honda FitHonda Fit Gen.2Japan, 2008 > present6 versions
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The factory will build CVTs beginning in the second half of 2015 with a capacity of 350,000 units a year. When complete, the factory will have a capacity of 700,000 transmissions a year and employ 1,500 people. Some of the transmissions will also be shipped to other Honda factories outside of Mexico.

"With the growing skills of our new associates in Mexico we are establishing a new production base that will achieve outstanding global competitiveness," said Honda North America Chief Operating Officer Tetsuo Iwamura.

Honda began building cars in Mexico in 1995, but the when the new Celaya factory opens next year it will quadruple its Mexican annual production capacity to 263,000 units. The vehicle and transmission plants in Celaya represent a a combined investment of $1.27 billion for Honda.