Honda to make subcompact cars in Mexico, employ 3,200

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Honda to make subcompact cars in Mexico, employ 3,200 3

Honda, which ranks no. 3 in the Japanese market and no. 5 in the U.S. market, is planning a further expansion into the auto-market and is expected to manufacture subcompact cars in Mexico. The move will also see the automaker hiring around 3,200 people.

The new assembly plant that Honda plans to build in Mexico is mainly to contain costs and meet its demands in the small car sector. The Japanese company plans to spend around $800 million in this new venture and. It’s also the second major investment in market by a Japanese.

Honda is hopeful to open the plant by 2014 and it would produce around 200,000 cars yearly. Mexico will have an opportunity to provide 3,200 new jobs. Mazda Motor Corp is also planning to open a plant in the State of Guanajuato, in the same region.

Honda, a major player in the market for years, will boost its status in the small-car segment in the U.S. The cost-cutting will also help the automaker to cover recent losses

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