Honda Announces New Plants In U.S., Canada

Honda Motor Co., Ltd. announced on May 16 the construction of two new plants and the expansion of two other plants. A new U.S. plant will be constructed at a cost of $400 million with production to begin in 2008. More than 1,500 associates will be employed at this plant. Annual capacity at the plant will be 200,000 vehicles, and the plant "will feature Honda's most advanced, efficient and flexible production technologies and will have the smallest environmental impact of any Honda automobile plant in North America," according to the company.

In Canada, a new engine plant will begin production of four-cylinder engines in 2008, at a cost of $140 million and employ 340 associates. The plant will be located with the current operations in Alliston, Ontario. Production, will begin in 2008, with an annual capacity of approximately 200,000.

At the Anna Engine Plant (AEP) in Anna, Ohio, Honda will invest $75 million to increase the number and types of engine parts it produces in Ohio, including engine components currently supplied by plants in Japan. This expansion will include the creation of approximately 40 new jobs and construction of a new building on the same site as AEP. Production of the new components is targeted to begin in 2008.

As part of its "2010 Vision" program Honda will introduce a "new, more affordable, dedicated hybrid car" in the U.S. and Canada in 2009. Also in the next three years, Honda will create a new diesel engine technology that meets U.S. EPA Tier Bin 5 emission standards.

"We continue to experience record demand for Honda and Acura vehicles in North America," said Koichi Kondo, COO of Honda's North American region and president & CEO of American Honda. "To meet the needs of our customers and in accordance with our company's vision for the future, we will introduce new fuel efficient vehicles and deepen our commitment to production in North America and we will do this in an environmentally responsible way regarding our products and the operations that produce them."

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