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Viva Honda: Japanese Automaker to Build Subcompact Cars in Mexico

Honda has announced plans to open a new assembly plant in Mexico.

Honda announced last Friday that it will build an $800 million assembly plant in Mexico to produce subcompact vehicles for the Mexican and North American markets. Honda also said that the plant is scheduled to begin operation in 2014 with an annual capacity of 200,000 units. Along with other Japanese automakers, Honda seeks to relocate vehicle production from Japan due to the strength of the Yen making it difficult to make profit on exports.

Honda didn't identify the exact model to be assembled in Mexico, however the only subcompacts Honda sells in the US are the CR-Z hybrid, the Insight hybrid and the Fit. All three are currently being built in Japan. The new plant will be located in a suburb of Celaya, Guanajuato, which is around 210 miles east of the Japanese automaker's two existing plants in El Salto, Jalisco, where Honda assembles automobiles, motorcyles and auto parts. The plant will be Honda's eighth auto assembly plant in North America and that it will help increase its auto production capacity in North America from 1.63 million to 1.83 million units by 2014.

Over 87 percent of Honda and Acura vehicles sold in American where produced in North America last year. With the addition of the new Mexican assembly plant, Honda plans to increase those figures significantly in the very near future. Photos displayed are of the 2011 Honda Jazz.

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