Honda Motors to build car factory in Mexico

8/13/2011

DETROIT -- Honda Motor Co. will build a new auto assembly plant in Mexico to contain costs and meet expected demand for small cars once the U.S. market returns to prerecession levels.

The $800 million plant marks the second major investment in Mexico by a Japanese automaker in as many months while the industry in Japan is suffering from a strong yen, uncertainty about energy supply, and disruption to auto parts delivery after the March earthquake and tsunami.

Honda said the plant will open in 2014, with the capacity to produce 200,000 vehicles annually. It will employ 3,200 workers in central Mexico, the same region where Mazda Motor Corp. plans to build a new plant.