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Wire & Cable ASIA – November/December 2011

31

From the

americas

And the antenna of such a car enables a better phone

connection than that provided by a mobile handset.

To return to the automotive basis of these projected

advances, it is worth noting that the Ford-Toyota joint

venture is not the first in the US for development of

hybrid technology for pickup trucks and SUVs. In 2004,

General Motors; DaimlerChrysler, of unhappy memory;

and BMW set up a joint hybrid development centre in

Troy, Michigan, to create electric motors, transmissions,

electronics, wiring, and safety modules. The system

developed there powers some GM pickups and SUVs

but has not sold well.

The strong yen confirms Honda in

its commitment to North American

production as well as sales

Honda Motor Co has said it will build an $800 million auto

plant in Celaya, in the Mexican state of Guanajuato, to make

subcompacts. Honda’s eighth facility in North America will

raise the Japanese car maker’s production capacity in that

market from the current 1.63 million units to 1.83 million

units by 2014. As noted by Chris Woodyard in

USA Today

(12

th

August), currently the compact Civic is the smallest

model made in North America by American Honda Motor

(Torrance, California).

The subcompacts it offers – the popular Fit and the

hybrid CR-Z and Insight – are made in Japan. But

the rising value of the Japanese yen vis-à-vis the US

dollar has been killing profits, and has prompted a tilt

by the company toward producing cars for Americans

closer to the point of sale. In 2010, more than

87% of Honda and Acura cars and light trucks sold in the

US were produced in North America. “This will be one

big plant,” wrote Mr Woodyard, plausibly: it will employ

3,200 workers to turn out 200,000 cars and engines a year.

Honda is no stranger to the Celaya automotive cluster, north

of Mexico City, where the German car maker Volkswagen

and the Italian tyre maker Pirelli, among others, have put

down roots. A Honda auto plant 210 miles to the east – in

the neighbouring Mexican state of Jalisco – already makes

cars, motorcycles, and auto parts.

A range of favourable factors draws

auto parts makers to Mexico

In the first half of 2011, according to the Mexican trade

association National Auto Parts Industry (INA), ten Japanese

automotive suppliers and others from Canada and Germany

(for a total of 50 overseas companies) invested in new

operations in Mexico. The INA credits this to a mature

Mexican automotive sector, proximity to the US, free trade

agreements that allow export to 40 countries, favourable