El Salto, Jalisco, Mexico – Honda will build an automobile plant in Mexico that will produce subcompact vehicles for the North American and Mexican markets. The US$800 million plant is scheduled to begin operation in 2014.

The plant is about 340 kilometres east of the company’s two existing plants in El Salto, Jalisco, which build automobiles, motorcycles and auto parts. It will have an annual capacity of 200,000 and employ approximately 3,200 workers when it reaches full production.

The plant will be the eighth Honda auto plant in North America and its tenth assembly line. It will increase the company’s automobile production capacity in North America from the current 1.63 million units to 1.83 million units in 2014. In 2010, more than 94 per cent of Honda and Acura vehicles sold in Canada and 87 per cent of those sold in the U.S. were built in North America.

Honda also announced that its plant in Ontario, which builds the Civic sedan, coupe, and Si coupe and sedan, will return to full two-shift operations in September. The plant consolidated its two shifts into one in May to cope with parts supply issues following the earthquake in Japan.

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