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Honda to build new $470m transmission plant in Mexico

ABR Staff Writer Published 03 May 2013

Japanese automaker Honda is planning to build a new $470m transmission manufacturing plant in Celaya, Mexico.

The new transmission plant, which will be built on the same location as of the new automobile facility currently being constructed for producing Fit models, is scheduled to commence operations in the second half of 2015.

Initially, the facility will have a production capacity of 350,000 transmission units per year, with further plans to double the output in future.

Aimed at producing continuously variable transmissions (CVTs) for automobiles built in Mexico, the new facility will join automaker's existing transmission plants in Ohio and Georgia.

The facility would increase the automaker's transmission capacity in North America from the existing 1.375 million units to more than 1.7 million units by 2016, and exceed two million units upon reaching its full capacity of approximately 700,000 units annually.

Additionally, the move would support Honda's capacity to manufacture 1.92 million automobiles per year in Mexico.

Honda's new automobile plant in Celaya is scheduled to be commissioned in February 2014 with a production capacity of 200,000-units per year and will increase annual production capacity to 263,000 units.