Honda Motor Co. opened a new plant in Mexico on Friday.
This is the second plant they now have in Mexico. This new production factory is located in Celaya in the central state of Guanajauto and cost $800-million (£482-million) to build. The plant is proposed to push out 200,000 vehicles each year.
Honda's reasoning for building a second plant in Mexico is the rising power of Mexico in this sector and to improve on the already strong hold they have on the North American market, particularly the US market.
From this factory Honda will produce the popular Honda Fit hatchback compact car and another compact SUV which has not yet been named. The factory will have 3,200 workers including state officials and Honda executives.
Honda Chief Executive Takanobu Ito said this about the new plant: “We have great expectations for growth in the US market as well as the Mexican market. In addition to having the North American Free Trade Agreement (Nafta), Mexico has free-trade deals with several regions in the world, including Japan and Europe.”
Automobile manufacturing has become Latin America's second largest economy and is a favourite destination for several manufacturers due to the low wages, skilled work force and plenty of free trade deals with other leading economies.
Enrique Pena Nieto the Mexican president was there to open the new factory on Friday 21st February 2014.
Mexico is now the world's 8th largest producer of cars and is 4th in the world for exporting cars, behind Germany, South Korea and Japan.
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