While Australia, and many other parts of the world are facing cutbacks and closures of automobile production, there is one place in the world that seems to be getting the lion’s share of business. Welcome to Mexico, the land of manufacturing and production for the next generation of automobiles. Mexico hasn’t always been a leader in automobile production, but over the last couple years, manufacturers have been viewing it as a great place to do business because of its access to international shipping lanes and bountiful natural resources.
Honda is the latest manufacturer to make the move to Mexico, on a multibillion dollar investment to produce the Honda Fit. They are moving operations from a factory in Japan to Celaya, Mexico, where another 800 Million dollars has been injected into the project.
USA Today writes:
“Honda is investing $800 million in the assembly plant and $470 million in the adjacent transmission plant in Celaya because of Celaya’s lower labor rates and proximity to two port cities, one on the Pacific Coast, the other on the Gulf of Mexico. This is the latest in a series of new investments automakers are making in Mexico. Chrysler, Nissan and Volkswagen are all either expanding or opening new plants south of the border.”
Honda will be joining the other big producers to take advantage of lower labour costs, good logistical placement, and lower costs of raw materials.
Honda’s new plant will boost Honda vehicle production to 1.92 million vehicles, making it one of the top automakers. Mexico continues to accept new business and welcomes the opportunities to provide new jobs to its citizens, along with the spinoffs in business coming from small motor parts, accessories, and raw materials that plants need.
USAToday writes, “Nissan Motor Co. in November opened a $2 billion plant in Aguascalientes, its third auto-assembly plant in Mexico, and Mazda Motor Corp. marks the opening of its first factory in the country next week.” While other countries are shutting their doors, Mexico is waiting with arms wide open. It will be interesting to see how all these various automakers compete for use among raw materials and shipping lanes as they are brought into production.
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