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Honda invests $470 million for new transmission plant in Mexico

Honda has announced that it has made an initial investment of $470 million to build a brand new transmission plant in Ceyala, Mexico. For those keeping track, this is the same city that will also house Honda's new automobile manufacturing facility, which will begin production of the Fit compact beginning in the spring of 2014.
This new transmission plant is expected to come online in the second half of 2015, with an annual production capacity of 350,000 units, though that number is expected to double in the years following the plant's opening. With a 700,000-unit production capacity, Honda says a full 1,500 new associates will be hired at the Mexican plant.
Honda will specifically use this new transmission plant for the production of CVTs for automobiles built in Mexico, as well as for cars produced in facilities around the world. It stands to reason, then, that since the next-generation Honda Fit will be built right around the corner from these new CVTs, the small hatchback - which is expected to grow into a full family of vehicles - could be fitted with continuously variable units in the future.

The Honda Crosstour is no more

While hardly the most surprising news in the automotive world, it's with sad hearts that we report the passing of any automotive nameplate... even when it's as generally unloved as the Honda Crosstour. In a statement from American Honda, Executive Vice President John Mendel confirms the quirky, sort-of wagon's demise for the 2016 model year. The Crosstour was introduced in 2010 as a compromise between a crossover and a traditional station wagon. However, unlike the popular Subaru Outback with a similar melding of styles, Honda's was never able to really catch on. Honda America's CEO was disappointed with sales as far back as 2011, and an attempt to make the model look a little more rugged didn't work. In 2014, 11,802 Crosstours were sold, a 29.9-percent drop from the year before. In its announcement for the vehicle's discontinuation, Honda says the new HR-V should "play a more significant role as a gateway model." The company thinks the crossover segment today has changed from when the Crosstour debuted. The capacity at the East Liberty Plant in Ohio previously required for Crosstour production will be used for the more popular CR-V, Acura RDX and, as of early 2017, the MDX. Meanwhile, production of the Honda Accord Hybrid will be moved from the Marysville Auto Plant in Ohio to Japan. Statement by John Mendel, Executive Vice President, American Honda Motor Co., Inc. Re: North American Production Portfolio Apr 8, 2015 Honda's growth strategy in North America is keyed to aligning our product portfolio and related production around the needs of our customers and growth segments in the marketplace. This includes the fortification of our light truck line-up with the recent introduction of a refreshed version of America's best- selling SUV, the CR-V, as well as the all-new 2016 HR-V, a new 2016 Pilot, and the next generation Ridgeline truck, coming to market next year. The strategy also includes strengthening our leading lineup of passenger cars with the introduction this fall of an all-new Civic lineup that will include more variants than ever before, including a new five-door model. In order to fulfill this customer-focused strategy, we are making several changes to the lineup of vehicles we build in our auto plants in Ohio.

Don't drive some 2001-03 Hondas and Acuras with Takata airbags, feds say

The National Highway Traffic Safety Administration (NHTSA) on Thursday warned owners of certain 2001-03 Honda and Acura models to stop driving their vehicles immediately due greater risks posed by their defective Takata airbags. NHTSA says the airbag inflators have up to a 50-percent chance of exploding in an accident. Dangerous ruptures are more likely to occur in vehicles that spend a significant amount of time in high humidity. About 313,000 vehicles are affected. They are: The 2001 to 2002 Honda Accord and Civic, the 2002 to 2003 Acura TL, 2002 Honda CR-V and Odyssey, 2003 Acura CL, and 2003 Honda Pilot. All of these vehicles were recalled from 2008 to 2011 for being equipped with Takata inflators, but the feds are urging immediate action due to the elevated risk. The inflators in this group of cars have a manufacturing defect that "greatly increases the potential for dangerous rupture when a crash causes the airbag to deploy," NHTSA said. "The air bag inflators in this particular group of vehicles pose a grave danger to drivers and passengers that must be fixed right away," NHTSA Administrator Mark Rosekind said in a statement. Related video: News Source: NHTSA, Automotive News Auto News Honda Minivan/Van SUV Sedan airbag