Honda may add a new assembly plant in North America, as the company's CEO, Toshihiro Mibe, expressed interest in increasing sales in the region. In an interview with a Japanese newspaper, Mibe stated, "I want to increase the number of sales in North America a lot." He also mentioned that the basic idea is to produce in a place where there is demand.
Honda is already deeply entrenched in North America, with two factories in Ohio, one in Indiana, and another in Alabama. The company also has assembly plants in Mexico and Canada. However, with North America being Honda's largest and most profitable market, making up around 40 percent of the company's global sales, the company is looking to invest even further in the region.
View Price on AmazonThe company's facilities in the U.S., Mexico, and Canada are already running close to full capacity, prompting Honda to consider a new plant. According to data from GlobalData, Honda's U.S. factories are operating at 85 percent of their 1.2 million total capacity. When including all North American factories, the utilization rate rises to 90 percent out of a maximum capacity of 1.8 million vehicles.
An extra factory would help Honda grow its North American sales even further, while also giving the company some extra leeway to handle supply chain disruptions. Mibe stated, "[The existing factories are] almost in full production. If you don't have a buffer, you can’t recover production."
Source: caranddriver.com
