November 27, 2007 -- Honda has increased production capacity of the CR-V crossover from 30,000 to 50,000 units a year at its assembly plant in El Salto, in western Mexico, according to Automotive News. Honda spokesperson Eduardo Aragon stated that the car will be exported to Brazil and Argentina in January. The El Salto plant also is raising its production of parts for the Accord and the CR-V and will add an all-terrain vehicle to its line-up of vehicles shipped to the United States. "The parts are for the United States and Mexico, and from January they'll be sent to Argentina and Brazil. We make parts for the same markets to which the vehicles are exported," Aragon said. Honda's production of injection moulded bumpers and instrument panels at the plant will increase from 550,000 units to 1 million a year. Last Thursday (22 November), Honda's chief executive officer (CEO) Takeo Fukui visited the plant together with Mexican President Felipe Calderon.

Fukui said in a speech that between 2006 and 2008, Honda planned to invest US$140 million in El Salto, adding that the Japanese auto manufacturer would assemble a two-seater ATV called the "Big Red" at the facility. It will be exported exclusively to the United States, going on sale next year.Significance: Honda's first passenger car was assembled at the El Salto facility in 1995. Honda started assembling the CR-V in El Salto in September after phasing out production of the Honda Accord sedan. The Mexican-made CR-V, already sold in the United States and Mexico, seems to have been very popular with customers, while sales of the SUV-C segment vehicles in Brazil are also expected to rise significantly over the next years. The El Salto plant has produced bumpers for the Accord since 1996, while it began producing bumpers and instrument panels for the CR-V this year. The Japanese carmaker employs 2,800 people at its El Salto plant and the CR-V capacity increase will add 600 jobs.

Source: Global Insight Daily Analysis