Recently Honda Motor declared it decided to build its Fit small car at the Mexico plant, to be exported in the U.S. and other markets.
This is Honda’s plan to expand its local production footprint to combat the Japanese yen’s profit-eating strength. The plant is situated near Celaya, Guanajuato and it will begin production in 2014 with 200,000 units annually, which will increase the company’s production capacity to 1.87 million vehicles in North America until 2014, from the present 1.63 million. The next generation Acura NSX sports car will be built in Ohio and it is expected to go on sale at the end of 2014.
“Honda will soon produce everything from subcompacts to super cars in North America,” said Rick Schostek, senior vice president of Honda of America Manufacting Inc.
In 2011 from the total of Honda and Acura models sold in America, more than 85% were build in the States, Canada and Mexico with domestic and globally sourced parts. The company tries to fight the yen’s soaring foreign exchange rate against the dollar and euro by shifting more production outside Japan. In 2011, 59,235 Fits were sold in the U.S., 9% up compared to 2010.