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

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

James Raia

A sports, travel and business journalist for more than 45 years, James has written the new car review column The Weekly Driver since 2004. In addition to founding this site in 2004, James writes a Sunday automotive column for The San Jose Mercury and East Bay Times in Walnut Creek, Calif., and monthly auto review and wellness columns for Gulfshore Business, a magazine in Southwest Florida. An author and contributor to many newspapers, magazines and online publications, co-hosted The Weekly Driver Podcast from 2017 to 2024.