Honda has begun the construction of a $550 million automobile plant on a 1,700-acre tract in Decatur County, Indiana, near Greensburg. Located 50 miles southeast of Indianapolis, the plant will begin mass production of fuel efficient 4-cylinder vehicles in fall 2008. The plant will have an annual production capacity of 200,000 vehicles and employment of 2,000 associates.

The new Indiana plant, Honda’s seventh auto plant and 15th major plant in North America, will help boost Honda's total North American auto production capacity from 1.4 million units to more than 1.6 million units in 2008, grow Honda’s employment in North America to more that 37,000 associates and increase North American capital investment to more than $9 billion.

"Honda's success in America has been based on our strong commitment to our customers," said Koichi Kondo, president and CEO of American Honda Motor Co., Inc., and chief operating officer of Honda's North America Region operations. "We believe the great state of Indiana has what we need to continue this success—an outstanding community of people, excellent transportation systems, and the necessary infrastructure to support industry. It is an ideal location in the Midwest both for our network of parts suppliers and as a central location for all of our customers across the country."