Mexico’s success in car exports attracts second Honda factory

http://www.rawstory.com/rs/2014/02/21/mexicos-success-in-car-exports-attracts-second-honda-factory/



Mexico’s success in car exports attracts second Honda factory
By Agence France-Presse
Friday, February 21, 2014 19:32 EST

Honda unveiled a second factory in Mexico on Friday, seeking to capitalize on the nation’s rising power in the sector and strengthen the Japanese car giant’s foothold in North America.

The $800 million plant in Celaya, in the central state of Guanajuato, 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 Honda, producing the Honda Fit hatchback and a yet-to-be-named compact-sport utility vehicle in Mexico will allow the company to expand its presence in the Mexican and U.S. markets.

Latin America’s second-biggest economy has become an increasingly favored destination for car makers thanks to its lower wages, skilled workforce and participation in a raft of free-trade pacts.