As part of this new strategy, Honda's Canadian manufacturing operations will become responsible for building the next-gen version of the European CR-V. Once assembled, the popular crossovers will then be exported back across the Atlantic. The investment to make these changes comes from 875 million Canadian dollars ($690 million) already allocated by Honda for expansion there.
The current European CR-V (pictured above) is made in Swindon, England, and with that model moving to Canada, the site fulfills the second part of this production shuffle. Honda will invest 200 million pounds ($300 million) there to make the location a global production hub specifically for the next-gen Civic five-door hatchback. The examples made in the UK will be not just for Europe but also will be "exported to key global markets," according to the automaker.
Honda now confirms one of those markets to be the US, and a recent rumor suggests the company sending over around 40,000 of them a year.
ALLISTON, ON (March 30, 2015) – Honda of Canada Mfg. (HCM), a division of Honda Canada Inc., announced today that it will produce the next generation CR-V model for the European market. This will be the first time that HCM will export vehicles to Europe.
Today's news follows Honda's recent announcement that it will invest $857M in its Canadian facilities, as it prepares for production as the global lead plant for the next generation Honda Civic, Canada's best-selling passenger car for the past 17 years.
"Honda is thrilled to once again have good news for automotive manufacturing in Canada by broadening our production portfolio to include exports to the European market," said Jerry Chenkin, President and CEO of Honda Canada Inc. "This expansion decision was made possible due to our deep, mature, and rich talent pool with nearly 30 years of automotive manufacturing experience. We are so proud that our Canadian associates have the reputation of producing high quality vehicles that will meet the needs of the discerning European customer."
The announcement further solidifies Honda's already deep roots and commitment to Canada. This export plan leverages Honda's previous investment announcement, therefore it does not require significant capital investment and the impact on jobs will be modest. However, the agreement marks an important broadening of HCM's export destinations, it secures highly skilled jobs in the region and provides additional opportunities for Honda's chain of 1,500 Canadian suppliers.
"This decision to export CR-Vs was also made possible thanks to the Government of Canada negotiating a free trade agreement with Europe under the Canada-European Union Comprehensive Economic and Trade Agreement (CETA). These opportunities will open new markets for our high quality vehicles from Canada and help keep us competitive in the global environment," added Chenkin.
The announcement today was attended by Canadian Prime Minister Stephen Harper and the Minister of International Trade, the honourable Ed Fast. PRIME MINISTER QUOTE...
Honda of Canada Mfg. has the capacity to produce 390,000 Civic and CR-V models annually for the Canadian and North America markets, as well as for export. Of which, approximately 100,000, Canadian-built Civic and CR-V units are sold on an annual basis here in Canada. HCM also produces 260,000 four-cylinder engines annually.
Honda Canada Inc. was founded in 1969. It has produced more than 6.5 million cars and trucks since 1986 at its two manufacturing facilities and builds engines at a third manufacturing plant in Alliston, Ontario. Both manufacturing facilities are extremely flexible and currently build Honda Civic and CR-V models. Honda Canada has invested more than $3.9 billion in Canada and each year it sources nearly $2.1 billion in goods and services from Canadian suppliers. Honda Canada has sold more than 4 million Honda and Acura passenger cars and light-duty trucks in Canada.
Honda of the UK Manufacturing confirms future production activities and additional ￡200m investment
Honda's European production facility to become global production hub for next generation Civic five door
New £200 million investment
Long-term vision for European plant in Honda's global operations
Honda's flagship production facility in Europe, Honda of the UK Manufacturing (HUM) will become a global production hub for the next generation Civic five door model, as Honda continues to develop its global production network to maximise the efficiency and quality of its manufacturing operations.
The Civic five door will be produced for the European market as well as being exported to key global markets. Further, by developing the European facility into a global manufacturing hub for this model, HUM will increase Civic volumes whilst developing improved economies of scale. The skills, knowledge and experience accrued by Honda Associates since Civic production began at HUM over 20 years ago, will play an important role as HUM specialises in the production of the Civic model.
Honda will invest over £200million into new, advanced production technologies and processes, further enhancing Honda's European manufacturing facilities. This new contribution brings Honda's total investment in HUM to over £2.2billion since 1985.
"By establishing HUM as a global production facility for the Civic five door, Honda is demonstrating its long-term commitment to manufacturing in the UK and Europe.
This is incredibly important for HUM and is a reward for the commitment and effort put in by Honda Associates in recent years," said Jason Smith, Director of HUM. "As a global production facility for the Civic five door model we look forward to making the most of the opportunity to export this model not only to our European customers, but also, to key global markets."
As HUM develops into a specialist Civic production facility, the next generation CR-V will be manufactured at Honda of Canada Manufacturing (HCM), in Ontario and
CR-V will be imported to Europe.
"This announcement sends a clear message to our Associates and suppliers of the strategic importance that Honda Motor Company places on producing cars at our plant in Swindon, UK" said Toshiaki Mikoshiba, COO and President of Honda Motor Europe. "We will continue to provide high quality products to meet the expectations of our European customers and having just unveiled four new models for the European market, we look forward with renewed optimism and purpose for Honda in Europe."