Tuesday, October 28, 2014

Honda Facing Parts Theft, Railcar Hijacking, and Quality Issues at New Mexican Plant

Honda Facing production Issues At New Plant In Mexico
We like the Honda Fit, as it delivers a large amount of behind-the-wheel fun in a small, clever package, and we'd recommend it to just about anyone shopping for an affordable, practical runabout. Unfortunately, we would have to add the caveat that it might take a long time to get one: Automotive News is reporting that production of the Fit and its upcoming HR-V sibling are severely delayed.

Fit shipments are delayed by two months, the industry paper reports. And the HR-V will arrive at dealers in spring, instead of late 2014 as originally planned. These delays will cost Honda and its dealers dearly; they had hoped to benefit from the sales growth and buzz surrounding the launch of the two vehicles.

The cars are tardy because of massive problems at Honda's $800-million production site in Celaya, Mexico. The brand-new plant is suffering from quality glitches and component-supply problems. Auto-production expert Ron Harbour, quoted by Automotive News, has said that it is tough to find skilled laborers. Moreover, even transporting parts in and cars out can be a problem, as "railcars do get hijacked" and completed vehicles have had parts stripped from them.

Finding a capable work force won't get any easier for Honda, as BMW, Audi, and Kia are in the process of building their very own production sites in Mexico right now. As they watch Honda struggle with its new facility, they might need to prepare for similar issues once their lines start churning out product.



As bad as things are in Mexico, they could perhaps be even worse. In a speech at the IZB supplier fair in Wolfsburg two years ago, Audi purchasing chief Bernd Martens cited Mexico as a positive example, contrasting it with what he characterized as the sorry state of the production and supplier landscape in Brazil.



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