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Old 08-12-2011, 02:49 PM   #1
AVANTI R5
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Default Honda plans $800M plant in Mexico to make subcompacts for North America

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said today it will build an $800 million assembly plant in Mexico to produce subcompact vehicles for the Mexican and North American markets. The Japanese automaker said the plant is scheduled to begin operation in 2014 with an annual capacity of 200,000 units.

Honda and other Japanese automakers are seeking to relocate car and truck production from Japan because the strength of the yen makes it difficult to make money on exports.

In addition to Honda, Mazda Motor Corp. and Nissan Motor Co. have announced plans for new or expanded plants and production in Mexico.
Hyundai Motor Corp. is also looking to add manufacturing capacity in North America, including Mexico, according to several recently published reports.

Honda didn't identify the model to be assembled in Mexico, but the only subcompacts the automaker sells in the United States are the Fit, the CR-Z hybrid and the slightly larger Insight hybrid.

All three models are based on the same platform and now built in Japan.
The Mexico plant will provide Honda with a source of low-cost labor and components to offset the lower profit margins on subcompact models.
8th U.S. plant

The new Honda plant will be located in a suburb of Celaya, Guanajuato, about 210 miles east of Honda's two existing plants in El Salto, Jalisco, where the company assembles automobiles, motorcycles and auto parts.
Employment at the new plant is expected to reach 3,200 workers, Honda said in a statement.

It will be the automaker's eighth auto assembly plant in North America.
Honda said the new plant will increase its automobile production capacity in North America from 1.63 million units to 1.83 million units by 2014.
More than 87 percent of Honda and Acura cars and light trucks sold in the U.S. market were produced in North America last year.

The smallest vehicle currently assembled by Honda in North America is the compact Civic, which is built at plants in Indiana and Ontario, Canada.

Challenging time
The move comes at a challenging time for Honda. Sales in its most important market, the United States, are down 10 percent this year, in part because of the impact of the March earthquake in Japan.

Honda also is dealing with recent bad news on the quality front as Consumer Reports recently gave the automaker's Civic a negative review and the automaker recalled 2.5 million cars, small SUVs and minivans globally, including its popular Accord sedan, to repair a software problem.
Bill Visnic, analyst with Edmunds.com, said siting the plant in Mexico makes sense for the Japanese automaker because profit margins on subcompact cars are thin and Mexico offers lower cost labor.

"Also, after this year's natural disaster in Japan, Honda and the other major Japanese automakers surely will be considering diversifying their production base to other regions," said Visnic.

It is also a challenging time because of inroads made by rivals including Hyundai, particularly in the small-car market.

Honda is No. 5 in the U.S. market, and No. 3 in its home Japan market. Honda says its investment in North America would now total $21 billion.
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Old 08-12-2011, 02:52 PM   #2
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The beginning of the end..
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Old 08-12-2011, 02:54 PM   #3
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Drugs n guns to come in every bumper cover, sombreros free with mail in rebate!
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Old 08-12-2011, 03:04 PM   #4
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Really people? You understand a lot of car companies have plants in Mexico right? And Honda already had 2 according to the article. This is a good business move by them, that's all.
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Old 08-12-2011, 04:32 PM   #5
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Really people? You understand a lot of car companies have plants in Mexico right? And Honda already had 2 according to the article. This is a good business move by them, that's all.
I lost a lot of trust in car companies in general. I just don't like this move because it's sure to bring more cars tailored specifically for the (overweight, lazy, stupid) American population.
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Old 08-12-2011, 04:49 PM   #6
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I lost a lot of trust in car companies in general. I just don't like this move because it's sure to bring more cars tailored specifically for the (overweight, lazy, stupid) American population.
what exactly makes you sad? do you dislike companies catering to market forces, or do you just hate overweight, lazy, stupid (which we clearly all are) 'mericans?
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Old 08-12-2011, 05:09 PM   #7
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Really people? You understand a lot of car companies have plants in Mexico right? And Honda already had 2 according to the article. This is a good business move by them, that's all.
sure all these " good business was done to good ool US of A " when everything has been moved out of the country and look where you guys are at in terms of economy!! no more jobs created unless its in the GOV or service industry , just keep printing money until your money is worth the mexican pesos ,cause who needs people to work ..

same **** every where now
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Old 08-12-2011, 05:10 PM   #8
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what exactly makes you sad? do you dislike companies catering to market forces, or do you just hate overweight, lazy, stupid (which we clearly all are) 'mericans?
I wish target markets would lose about 45lbs on average so seats would feel right to normal sized rear's like my own. I hate floating around in a seat around a corner.
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Old 08-12-2011, 05:17 PM   #9
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reminds me of how vw started building in mexico and brazil and how ****ty their cars have become.
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Old 08-12-2011, 05:37 PM   #10
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reminds me of how vw started building in mexico and brazil and how ****ty their cars have become.
That is my concern.
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Old 08-12-2011, 08:56 PM   #11
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reminds me of how vw started building in mexico and brazil and how ****ty their cars have become.
My old Passat was made in Germany and was still a complete POS.

I do agree, however, that from a manufacturing perspective:

Mexico.

The China of North America.
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Old 08-12-2011, 09:56 PM   #12
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That is my concern.
Honda could ruin the only likable car they make. On the other hand, the Fusion's made in Mexico and the ones I've driven have not been wanting for quality.
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Old 08-12-2011, 10:58 PM   #13
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I lost a lot of trust in car companies in general. I just don't like this move because it's sure to bring more cars tailored specifically for the (overweight, lazy, stupid) American population.
Subcompacts?
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Old 08-13-2011, 12:03 AM   #14
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I've heard with China's economic/inflation issues that it is cheaper to make stuff in Mexico now. Any economics savvy folks care to explain if that's true? And how?
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Old 08-13-2011, 12:12 AM   #15
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reminds me of how vw started building in mexico and brazil and how ****ty their cars have become.
I think that's a common misconception. When VW products started to have a lot of issues, VW fanbois needed something to blame other than their beloved "German engineering", so Mexico it was.

Except most of the issues that VAG products had were design problems, not assembly problems. And being built in Germany didn't save the Passat/GTI or the entire Audi line either.

So stop blaming hard working Mexicans, and let's start blaming the Germans. Mexico has better food anyway.
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Old 08-13-2011, 12:35 AM   #16
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So stop blaming hard working Mexicans, and let's start blaming the Germans. Mexico has better food anyway.
The last time Mexicans and Germans got together before that, they created banda
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Old 08-13-2011, 03:42 AM   #17
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I think that's a common misconception. When VW products started to have a lot of issues, VW fanbois needed something to blame other than their beloved "German engineering", so Mexico it was.

Except most of the issues that VAG products had were design problems, not assembly problems. And being built in Germany didn't save the Passat/GTI or the entire Audi line either.

So stop blaming hard working Mexicans, and let's start blaming the Germans. Mexico has better food anyway.

i'll blame whoever i want. never was a vw fanboy. electrical issues are what tarnished the brand. these are assembly problems, not design problems. i'm not saying this just from hearsay, though there is plenty, but have seen it in an acquaintance's car (i don't call him a friend because i hate the *******, go figure he drives a vw)

audi is doing fantastically last time i checked.

also...


smart working > hard working
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Old 08-13-2011, 04:52 AM   #18
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sure all these " good business was done to good ool US of A " when everything has been moved out of the country and look where you guys are at in terms of economy!! no more jobs created unless its in the GOV or service industry , just keep printing money until your money is worth the mexican pesos ,cause who needs people to work ..

same **** every where now
Glad to see people on the outside see whats happening with our country. GOVT TAKE OVER PARTY WOOT! Come join us when they slap all the lazy entitled people into indentured servitude instead of allowing them to collect checks .

They srsy should have just let our debt situation go very very badly... at least then we could have suffered once extremely as a whole, saw that the current model of pseudo-capitalism with tons of regs & changes as well as tons of entitlement programs discouraging hard work and circumventing failures or shortcomings (no matter how fair or unfair they are; you cannot logically argue circumstance as there are purely opinionated aspects as to what the proper lines for who deserves help are... so just forget about it and say "sucks to be you" since that is the one simple truth that cannot be argued and can be forced upon others properly, regardless of how brain dead they want to be).
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Old 08-13-2011, 07:05 AM   #19
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audi is doing fantastically last time i checked.


Sales are only weakly correlated with how good a car is.
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Old 08-13-2011, 12:11 PM   #20
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Sales are only weakly correlated with how good a car is.
that's why hondas and toyotas sold so well?

that's why toyota took a little sales hit with the whole brake getting stuck fiasco?

that's why gm has been in the ****ter for the past few years?

i think those examples speak volumes over what one magazine *thinks* about one car

and...

http://www.jdpower.com/autos/ratings...ings-by-brand/

audi's are just as reliable as subarus. subarus are selling and many people tend to think they're reliable when you're not boosting on 20psi
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Old 08-13-2011, 02:40 PM   #21
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that's why hondas and toyotas sold so well?

that's why toyota took a little sales hit with the whole brake getting stuck fiasco?

that's why gm has been in the ****ter for the past few years?

i think those examples speak volumes over what one magazine *thinks* about one car
JD Power is crap. I much more trust a magazine that buys cars anonymously from regular dealers instead of basing their impressions on likely preproduction ringers at all-expenses-paid press galas in fabulous locations.

Toyota's sales drop was due to massive bad publicity for potential unintended acceleration, a much worse thing than a simple breakdown. It turned out that it was driver error in all the cases not attributable to doubling up on unfastened, sliding floormats due to driver idiocy.

Oh, I seem to recall a similar incident involving sales drops following allegations of unintended acceleration back in the 1980s Which manufacturer was it? Auto Union? Oh, Audi! That was it.

GM's woes are more deeply seated than mere unreliability. They've been producing crap designs and resting on their nonexistent laurels for decades.
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Old 08-13-2011, 08:28 PM   #22
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Oh, I seem to recall a similar incident involving sales drops following allegations of unintended acceleration back in the 1980s… Which manufacturer was it? Auto Union? Oh, Audi! That was it.
i... think... you're proving my point.

toyota makes good quality cars and have had sales drops due to bad publicity.

which you admit is correct since we now know it wasn't toyota's fault, it was driver error.

hence...

audi makes good quality cars and have had sales drops due to bad publicity.

right? this is what i'm gathering you saying, which i completely agree with. i don't even remember what your point was.
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Old 08-13-2011, 08:37 PM   #23
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Originally Posted by Nimbus09
audi's are just as reliable as subarus.
I don't have any reason to offend you, but I find it hard to believe that a non VW fanboi could possibly hold this belief. JD Power is nothing more than a clever marketing scheme. The last gen VAG products had some serious recurring issues that I believe is very well documented.
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Old 08-13-2011, 09:45 PM   #24
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I don't have any reason to offend you, but I find it hard to believe that a non VW fanboi could possibly hold this belief. JD Power is nothing more than a clever marketing scheme. The last gen VAG products had some serious recurring issues that I believe is very well documented.

the only reason i threw in that jd power link was merely to show how one magazine can say one thing and another could claim the opposite.

every one of them has their flaws. jd power ratings are bought, CR samples too little of the population and extrapolates their findings, car and driver did the same with their legacy gt that broke down repeatedly, large sampling can only be done on the consumer end which makes it subjective, let alone cannot account for varying driving styles.

now, MY opinions come from experience.
vw's are ****: saw an ignition coil go out on one gti and a short which prevented another from starting.
audi: master slave cylinder blew at ~40k miles... and that's about it from the 3 2.0T owners that i knew.
subaru: surprise, surprise, my ignition coil went bad at ~15k miles.

again, i couldn't care less about vw's and audi's. in fact, i usually don't like the people driving them. i'm just speaking from what i know, and not just reading a magazine to form my opinion.
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Old 08-13-2011, 11:27 PM   #25
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That's quaint that you criticize CR for "sampl[ing] too little of the population" and then you base your opinions on an n of 3.
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