Honda Adds To Mexico Contract Manufacturing Efforts

Mexico Contract Manufacturing is not the only enterprise to benefit from Honda’s effort to double exports in the next several years from North American shores. In a recent announcement, Honda’s vice-president, Rick Schostek, stated their intention to export nearly 100,000 units this year alone, to markets destined for South America, Asia and Europe. Last year, U.S contract manufacturing operations for Honda yielded exports of 53,000 units outside the country. Plans are in place to boost that figure by another 50,000 units annually, with an eventual total reaching 250,000 vehicles to be exported. To that end, the Greensburg, Indiana Honda facility will hire approximately 300 new staff later in the year in an effort to increase output beginning as early as 2013.

The Greensburg plant will increase production of Honda’s most popular hybrid in the U.S. – the Civic Hybrid, after its initial introduction in only April of this year. Other models also added vehicle output for the previous year, with the plant undergoing a hiring boost of nearly 1,000 new employees with a second shift being added. Remarkably, it was the first time more vehicles were manufactured outside of Japan, with the U.S. producing 823,000 units compared to Japan’s 710,000 annual production levels. According to Honda’s Shostek, “nine of the 10 Honda and Acura models we sell in the U.S. will be built here,” adding that North America will play an increasingly larger role in the mid-sized Honda Accord production. Add to this, Honda’s intention of a new Mexico contract manufacturing facility to be built and completed by 2014 in the central part of the country and Honda will likely meet its goal to produce 1.92 million units in North America (including U.S., Canada and Mexico) by the middle of this decade.

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