Honda opens second plant in rising auto power Mexico
CELAYA, Mexico (AFP) - Honda unveiled a second factory in Mexico on Friday, seeking to capitalise on the nation's rising power in the sector and strengthen the Japanese car giant's foothold in North America.
The US$800 million (S$1.01 billion) plant in the central city of Celaya will churn out 200,000 units per year, contributing to Mexico's race to beat Canada and Japan as top car exporter to the United States.
For the company, producing the Honda Fit hatchback and a yet-to-be-named compact sport utility vehicle in Guanajuato state will expand its presence in the Mexican and US markets.
Latin America's second-biggest economy has become an increasingly favored destination for carmakers thanks to its lower wages, skilled workforce and participation in a raft of free-trade pacts.