Honda has begun with the production of its Fit subcompact in its Celaya, Mexico, plant. Recently it had also moved its production to North America from Japan for its vehicles sold in the US.
Until now all the Fit vehicles were sold in North America were imported from Japan. Now it is investing $800 million in the assembly plant and another $470 million in the adjacent transmission plant in Celaya.
Labor costs at the Celaya plant are lower and also Honda finds here the proximity to two port cities – the Gulf of Mexico and the Pacific Coast. The company is also planning to make a crossover at the plant from the same Fit platform.
According to Honda vice president Rick Schostek, the Celaya plant of the company has access to a rail line as well as highways to benefit shipping parts and finished cars as well. It is three hours away by car from northwest of Mexico city.
The latest Fit models are coming with a touch of slight redesign to offer more of cargo space and also more of interior.
Last year the company sold 53,513 units of Fits in the US, which was up by 8.4 percent compared to the sales figure of 2012. The car competes with Chevrolet Sonic, Toyota Yaris, Nissan Versa and Ford Fiesta.
The new plant of the company in Mexican assembly is reported to be employing about 1,600 workforce now and project to grow it to 3,200. Currently the facility has annual capacity of producing 200,000 units. Its new transmission plant will be opening in 2015 and heard to be employing about 1,500 work forces.