Honda Motor Co. plans to build a $470 million factory in Celaya, Mexico, to assemble continuously variable transmissions (CVTs).
The factory will operate alongside a plant under construction that’s scheduled to produce the next-generation Fit hatchback and a Fit-based crossover.
According to Honda’s management, the transmission plant will open in the second half of 2015 with an initial capacity of 350,000 units, rising to nearly 700,000 within several years. It will employ about 1,500 workers at peak capacity.
The Celaya factory will be the automaker’s third transmission plant in North America. Honda’s transmission capacity in North America will exceed 2 million units when Celaya reaches full production.
Ed Miller, Honda’s spokesperson, said the Celaya plant will focus on producing CVTs for vehicles built in North America, but export to other global markets is possible.
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