mikeyb
05-17-2006, 09:01 AM
Michigan, Indiana are after Japan's 3rd-largest automaker; Ohio, Tenn. also expected to bid.
Honda Motor Co. will build a new auto plant in the United States as part of a $665 million investment to boost vehicle and engine output in North America to keep pace with its growing sales.
Michigan and Indiana will be among the U.S. states competing to land Honda's sixth assembly plant and 14th manufacturing facility in North America.
Honda, the first Japanese automaker to build cars in the United States, said it would invest around $400 million to build a U.S. factory capable of turning out 200,000 vehicles a year starting in 2008.
It is earmarking $140 million to build an engine plant employing 340 workers near its Alliston assembly plant in the Canadian province of Ontario. It will spend $125 million to expand engine, transmission and powertrain production in Ohio and Georgia, adding 80 jobs.
"We continue to experience record demand for Honda and Acura vehicles in North America," said Koichi Kondo, president and CEO of American Honda.
"To meet the needs of our customers we will introduce new, fuel-efficient vehicles and deepen our commitment to production in North America."
Michigan, which is courting foreign automakers to offset a drop in domestic auto jobs, will tout its skilled work force and plentiful component suppliers in its pitch to Honda.
"The bulk of the supply chain is here," said Michael Shore of the Michigan Economic Development Corp.
Michigan also is trying to attract manufacturing investment from Toyota Motor Corp., which is studying plans to expand engine output in North America. Asian automakers account for much of the growth in the U.S. industry, as Detroit's automakers downsize their domestic operations in line with their declining U.S. market share.
Indiana Gov. Mitch Daniels said his government has been in talks with Honda for several months about sites in the southeastern part of the state, not far from the automaker's U.S. manufacturing hub in Ohio.
"The state is hopeful of being selected for this investment," Daniels said in a statement. "Honda is one of the world's most impressive and respected companies, and Indiana will do all it can to compete successfully to be its next home."
Fueling the speculation, the Indianapolis Star reported that a local law firm had acquired more than 1,000 acres of farmland in south-central Indiana on behalf of an unnamed company.
"Being in the upper Midwest would make sense for them. It's close enough to Ohio, where they have their production infrastructure," said industry analyst Maryann Keller, head of Maryann Keller & Associates.
Industry sources also expect Tennessee and Ohio to try to land the Honda plant, which will employ at least 1,500 workers.
The automaker sold 1.65 million cars and trucks in North America in 2005, including a record 1.46 million in the United States.
It expects to sell 1.72 million vehicles in North America this year, bolstered by strong demand for its new Civic compact.
This year, its U.S. sales are up 6.6 percent, boosting Honda's market share to 8.8 percent.
With the new plant, the automaker will raise its production capacity in North America to 1.6 million from 1.4 million vehicles.
The Tokyo-based automaker said it would invest $640 million to build a new car factory in Japan -- its first there in 30 years.
Honda says more than 80 percent of the vehicles sold in the United States are made in North America. Company officials say they want to keep the proportion of vehicles built in the region at around 80 percent of sales.
Honda, Japan's third-largest automaker, sold 3.37 million vehicles worldwide last year. It was the first Asian automaker to produce vehicles in the United States, starting with a motorcycle factory that it opened just outside Marysville, Ohio, in 1979.
Three years later, it opened the first Japanese car factory in the United States in Marysville.
Honda has ramped up production of its popular Civic at the automaker's East Liberty, Ohio, and Alliston, Ontario, plants.
Later this year, it will start assembling CR-V sport utility vehicles in East Liberty and the new Acura RDX SUV in Marysville.
Honda has scaled back production of light trucks because of weakening consumer demand for large vehicles amid rising gas prices. But Honda officials say the company is not able to meet worldwide demand for its tiny Fit subcompact. Honda said it planned to offer a new, more affordable hybrid car in North America in 2009.
<TABLE cellSpacing=0 cellPadding=0 width="90%" align=center><TBODY><TR><TD>Quote, originally posted by Detroit News </TD></TR></TBODY></TABLE>
Honda Motor Co. will build a new auto plant in the United States as part of a $665 million investment to boost vehicle and engine output in North America to keep pace with its growing sales.
Michigan and Indiana will be among the U.S. states competing to land Honda's sixth assembly plant and 14th manufacturing facility in North America.
Honda, the first Japanese automaker to build cars in the United States, said it would invest around $400 million to build a U.S. factory capable of turning out 200,000 vehicles a year starting in 2008.
It is earmarking $140 million to build an engine plant employing 340 workers near its Alliston assembly plant in the Canadian province of Ontario. It will spend $125 million to expand engine, transmission and powertrain production in Ohio and Georgia, adding 80 jobs.
"We continue to experience record demand for Honda and Acura vehicles in North America," said Koichi Kondo, president and CEO of American Honda.
"To meet the needs of our customers we will introduce new, fuel-efficient vehicles and deepen our commitment to production in North America."
Michigan, which is courting foreign automakers to offset a drop in domestic auto jobs, will tout its skilled work force and plentiful component suppliers in its pitch to Honda.
"The bulk of the supply chain is here," said Michael Shore of the Michigan Economic Development Corp.
Michigan also is trying to attract manufacturing investment from Toyota Motor Corp., which is studying plans to expand engine output in North America. Asian automakers account for much of the growth in the U.S. industry, as Detroit's automakers downsize their domestic operations in line with their declining U.S. market share.
Indiana Gov. Mitch Daniels said his government has been in talks with Honda for several months about sites in the southeastern part of the state, not far from the automaker's U.S. manufacturing hub in Ohio.
"The state is hopeful of being selected for this investment," Daniels said in a statement. "Honda is one of the world's most impressive and respected companies, and Indiana will do all it can to compete successfully to be its next home."
Fueling the speculation, the Indianapolis Star reported that a local law firm had acquired more than 1,000 acres of farmland in south-central Indiana on behalf of an unnamed company.
"Being in the upper Midwest would make sense for them. It's close enough to Ohio, where they have their production infrastructure," said industry analyst Maryann Keller, head of Maryann Keller & Associates.
Industry sources also expect Tennessee and Ohio to try to land the Honda plant, which will employ at least 1,500 workers.
The automaker sold 1.65 million cars and trucks in North America in 2005, including a record 1.46 million in the United States.
It expects to sell 1.72 million vehicles in North America this year, bolstered by strong demand for its new Civic compact.
This year, its U.S. sales are up 6.6 percent, boosting Honda's market share to 8.8 percent.
With the new plant, the automaker will raise its production capacity in North America to 1.6 million from 1.4 million vehicles.
The Tokyo-based automaker said it would invest $640 million to build a new car factory in Japan -- its first there in 30 years.
Honda says more than 80 percent of the vehicles sold in the United States are made in North America. Company officials say they want to keep the proportion of vehicles built in the region at around 80 percent of sales.
Honda, Japan's third-largest automaker, sold 3.37 million vehicles worldwide last year. It was the first Asian automaker to produce vehicles in the United States, starting with a motorcycle factory that it opened just outside Marysville, Ohio, in 1979.
Three years later, it opened the first Japanese car factory in the United States in Marysville.
Honda has ramped up production of its popular Civic at the automaker's East Liberty, Ohio, and Alliston, Ontario, plants.
Later this year, it will start assembling CR-V sport utility vehicles in East Liberty and the new Acura RDX SUV in Marysville.
Honda has scaled back production of light trucks because of weakening consumer demand for large vehicles amid rising gas prices. But Honda officials say the company is not able to meet worldwide demand for its tiny Fit subcompact. Honda said it planned to offer a new, more affordable hybrid car in North America in 2009.
<TABLE cellSpacing=0 cellPadding=0 width="90%" align=center><TBODY><TR><TD>Quote, originally posted by Detroit News </TD></TR></TBODY></TABLE>