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2015 Honda Fit production gets underway in Mexico

After two years of construction, Honda's new factory in Celaya, Mexico, has officially begun production of the all-new 2015 Fit in North America. Mexican President Enrique Pena Nieto and Honda President and CEO Takanobu Ito both attended the opening and watched the first Fit roll off the line at the $800-million plant. Later this year, Honda will add production of its new Vezel small crossover to the new facility, though the latter is expected to be marketed in North America under a new name.
The Celaya factory will specialize in building subcompact cars by employing cutting-edge tech to use less material and less energy during production. Honda is still constructing a $470-million transmission plant on the campus to build continuously variable transmissions in the second half of 2015. When it's finished, it is expected to have an annual capacity of 200,000 vehicles and employ 3,200 people.
With the facility's completion, Honda now has a 1.92-million unit annual production capacity in North America, and it claims that when Celaya reaches full production, 95-percent of vehicles sold in the US will be built in North America. The new Fit has already proven quite popular in Japan, and now we will have to wait and see if North American buyers embrace it as well. The first new Fit customer cars will hit the roads later this spring, and as Honda spokesman Steve Kinkade tells Autoblog, all Fit models sold in North American will be built at the plant. Scroll down to read the full press release about the Fit and its new Mexican home.

Honda sets record for lowest fuel consumption in Europe

If fuel economy over a long distance is of paramount importance, diesel continues to be a fantastic choice of fuel. Honda is the latest company to show that by earning a Guinness World Record for the lowest consumption in a car across the 24 contiguous countries of the European Union. The company's Civic Tourer wagon with a 1.6-liter i-DTEC diesel managed the equivalent of 83.5 miles per gallon over 8,387 miles. The 25-day journey was undertaken by Fergal McGrath and Julian Warren – members of Honda's European research and development team. They started from Belgium on June 1 and returned there on June 25 having driven around 7.5 hours each day. Over nearly a month of driving, their wagon only needed its tank filled nine times, and it averaged 932 miles between visits to the diesel pump. The Civic's results are impressive no matter how you look at it. The wagon handily beat the model's stated fuel economy of 61.9 mpg. The crew also beat the recent US record of 81.17 mpg over 8,233.5 miles in a Golf TDI for the best non-hybrid mileage across the 48 contiguous states. Guinness required that the Civic be unmodified from the standard car, and the same two drivers had to pilot it the whole way. The economy was certified via several redundant pieces of evidence, including a logbook, GPS, video, and photographs. McGrath and Warren credited their success to good route planning and smooth driving. Honda sets new GUINNESS WORLD RECORDS™ title for fuel efficiency, averaging 2.82 liters per 100km (100.31mpg) in 13,498km (8,387 mile) drive across 24 EU countries July 7, 2015 - Honda has set a new GUINNESS WORLD RECORDS title for 'Lowest fuel consumption – all 24 contiguous EU countries (all cars),' recording an average 2.82 liters per 100km (100.31mpg) over 13,498km (8,387 miles), in a 25 day drive across all 24 EU contiguous countries. Behind the wheel of a Honda Civic Tourer 1.6 i-DTEC for the entire journey were two members of Honda's European Research & Development (R&D) team, Fergal McGrath and Julian Warren, who took on the challenge to further demonstrate the impressive real-world fuel economy of the Tourer. The remarkable distance travelled is similar to the team driving to Australia from their home in the UK, stopping just nine times to refuel. The car achieved an incredible average 1500km (932 miles) on each tank of fuel, at a total fuel cost for the whole journey of just 645 Euros* (GBP459).

Average new-vehicle transaction price hits a whopping new peak in December

Elevated prices for products and higher borrowing rates led to record high transaction prices for new vehicles in December, with the average cost in the U.S. rising to a record $49,507, according to data from Kelley Blue Book released today. The report notes that ATPs — average transaction prices — have climbed above suggested retail prices — MSRPs — for more than a year. Sales volumes were up in December on a year-over-year basis by more than 5%, a situation Kelley attributed to improved supply. Overall sales for 2022, however, were off 8% year over year. “The transaction data from December clearly indicates overall prices showed no signs of coming down as we headed into year-end,” said Rebecca Rydzewski, research manager of economic and industry insights for Cox Automotive. “Luxury prices fell slightly in December, but non-luxury transaction prices were up. Truck sales were particularly strong last month, and with many trucks selling for more than $60,000, a new record was all but inevitable.” Industry analysts claim the most obvious headwinds in the new car market are generated by higher interest rates, forced by the Federal Reserve's rate hikes intended to tame inflation, and by generally limited inventory. A recent report from J.D. Power showed that the average monthly payment for a new vehicle loan in December was $718, up $47 from a year ago. But 16% of consumers in December took out loans with monthly payments of over $1,000. Consumers think vehicles, and electric vehicles especially, are way too expensive. Fortunately, manufacturersÂ’ incentives, all but extinct in the past two years, are returning, especially in the electric-vehicle and luxury market, the Kelley data suggest. Plus, "With the new tax credits on the way, electric vehicle ATPs will drop lower for qualifying vehicles,” Rydzewski said. Non-luxury brands, such as Honda and Kia, showed particularly strong performance in December, with the average price paid at $45,578 — a record high and an increase of $994 month over month. Meanwhile, the average luxury buyer paid $66,660 for a new vehicle last month. Mercedes-Benz and Land Rover showed the most price strength in the luxury market, transacting between 2.6% to 6.5% over sticker price. But luxury brands Audi, BMW, Infiniti, Lexus, Lincoln, and Volvo showed the least price strength with some discounting in effect, selling 1% or more below MSRP in December, according to the survey.