Honda Will Build CVTs for North American Market
Honda has always been a leader in creating new technological and mechanical standards. Honda’s Continuously Variable Transmission (CVT) is one of the best CVTs on the market. They are getting ready to begin producing a huge number of CVTs for the American market.
What is CVT?
CVT stands for “continuously variable transmission.” This is a transmission system that can change without going through various “steps” or gear ratios. It has an unlimited number of gear ratios which enables more fuel efficiency by utilizing vehicle RPMs more effectively. The CVT has become the transmission of choice for companies looking to produce more efficient and reliable autos.
How Big is the Demand?
Honda has estimated that it will build 1.92 million CVT vehicles for the North American market. It will start slow by producing about 350,000 units in its first year of production. The next year it will produce about 700,000 and slowly increase production as demand dictates.
The demand for CVTs in the North American market cannot be met by Honda’s current CVT production facilities. Honda is going to build a new factory in Celaya, Mexico. Honda believes it will be finished in time to begin production in late 2015. It should cost about $470 million to produce this new facility. Once it’s finished, it will be responsible for all CVT vehicles produced in Mexico.
Debut American CVT Vehicle
The Honda Fit is predicted to be the first CVT produced for the North American market. It will be built in a factory near where the new transmission factory will be, helping saving thousands of dollars in transportation charges annually, which could directly result in reduced prices on the new Honda vehicles.
The Future of North American Honda Production
This transmission factory will be the third such facility built in North America. There are two currently, one in Ohio and one in Georgia. Honda is looking to continue expanding their production market in North America, and are projected to produce at least 200,000 units annually with their current factories alone. Honda projects two million vehicles will be produced from North American facilities by the end of the decade.