Honda Motor Co is expanding its manufacturing capacity for the new generation of its CR-V SUV. The firm will shift production facility from Mexico to US.
The new Honda CR-V was unveiled at Detroit Eastern Market on Wednesday. The Honda executives stated that the company will expand its overall output capacity in North America.
The Indiana production facility in US will take over the CR-V production from the Mexico facility. The plant is capable of producing around 2,50,000 vehicles a year.
This move from Honda reflects the new challenges for automakers in the US, as the consumers turn towards the SUV rather than the sedans such as the Honda Civic.
Manufacturing Civic and CR-V side by side allows Honda to easily adjust to the shifts in the market. Whereas the Detroit Honda facility is dedicated to produce small cars.
Jeff Conrad, General Manager of the Honda Division said, "it's possible next year CR-V could be our best selling vehicle." The Honda CR-V will hit the markets late this year.
Cornard said that by boosting the production of the new CR-V will intensify competition in the compact SUV segment as the rival companies are following the same strategy.
The sales of compact utility vehicles are ever growing in the US. So Honda is tapping into the trend to make the most out of its latest SUV models in US.