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The company said that the new plant is scheduled to start operation in 2014 and is expected to employ approximately 3,200 associates at its full annual capacity of 200,000 units.
The new plant will apply the company's manufacturing system to produce vehicles and engines, and will occupy a 5.66 million-square-meter site in a suburb of Celaya, Guanajuato, about 210 miles east of the company's two existing plants in El Salto, Jalisco, which manufactures automobiles, motorcycles and auto parts.
By increasing use of local parts and materials, together with global parts sourcing, the new plant will provide customers with high-quality products at an affordable price.
The company said that the new Mexican plant will increase its automobile production capacity in North America from the current 1.63 million units to 1.83 million units in 2014.
American Honda Motor president and COO of Honda North America Region Tetsuo Iwamura said with growing demand for fuel-efficient vehicles, this plant will increase the company's ability to meet customer needs for subcompact vehicles from within North America.
"This new plant will further strengthen the foundation of Honda's North American business by enabling Honda to more flexibly respond to changing market conditions from within the region," Iwamura said.