WCA November 2011

From the americas

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

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).

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Wire & Cable ASIA – November/December 2011