Honda today marked its 30th anniversary of U.S. auto production by reaching cumulative investments of more than $1.2 billion in U.S. manufacturing operations in the last two years. In July, Indiana Auto Plant (IAP) announced an investment of $40 million to increase annual production capacity and hire 300 new production associates. Honda has a cumulative investment in America of more than $12.5 billion.
Honda Marks 30 Years in U.S.
“For 30 years, Honda associates in our U.S. auto plants have challenged themselves and set high standards to create products that meet the needs of our customers here and in markets around the world,” said Tetsuo Iwamura, president and CEO of American Honda Motor Co., Inc., and chief operating officer of North American Regional Operations. “We continue to invest in our associates, to keep our operations in America on the leading edge of quality, efficiency and flexibility.”
Consistent with Honda’s longstanding commitment to build products close to the customer, on Nov. 1, 1982 Honda became the first Japanese automaker to produce automobiles in America (using domestic and globally sourced parts) when the first Honda Accord rolled off the assembly line at the Marysville, Ohio, auto plant.
Honda builds automobiles, engines and transmissions in North America at seven auto plants, three auto engine plants and two transmission plants, with the capacity to produce 1.63 million cars and trucks per year. When combined with planned production increases at Honda’s U.S. auto plants, the 2014 start of production of sub-compact vehicles at Honda’s eighth North American auto plant, now under construction in Mexico, will increase Honda’s North American capacity to 1.92 million units.
The company has steadily grown its U.S. manufacturing, R&D and sales operations, and today employs more than 26,000 associates and operates nine major manufacturing plants and 15 R&D facilities in the U.S., including four auto plants with an annual capacity of 1.08 million Honda and Acura vehicles.
“Earlier in the month, IAP celebrated four years of mass production in Greensburg,” said IAP’s Senior Vice President Bob Nelson. “We are proud to be a part of the Honda family and contributing to creating products that bring our customer’s joy.”
In the coming years, Honda operations in North America will take on new responsibilities for the mass production launch of global Honda models. Honda associates in North America will help set the standards for production processes for key global products that also are made in other regions and then share their knowledge and expertise to support Honda plants all around the globe.
As part of this new global lead role, Honda also will increase exports from North America to global markets. Later this year, Honda will reach the one million mark in total automobile exports from the U.S. Honda also is increasing its export of major auto parts by almost 70 percent this year in support of Honda plants in South America, Europe and Asia. This will be a substantial increase in business for North American suppliers that will grow even greater in the coming years.
Honda’s U.S. capital investment exceeds $12.5 billion. In the last two years, Honda has invested more than $2 billion in new manufacturing capabilities in North America. The investments include:
- $400 million and 190 new jobs at its Lincoln, Ala., auto and engine plant to increase production by 40,000 vehicles per year (to 340,000) and the addition of Acura MDX production in early 2013 (transitioning from Honda of Canada Manufacturing Plant 2).
- $299 million and 170 new jobs at the Anna Engine Plant to innovate and expand local production of powertains and components, including production of pulleys for continuously variable transmissions and a new 320,000-square foot parts consolidation center.
- $40 million and nearly 300 new jobs at the Greensburg, Ind., auto plant to increase production by 50,000 units per year (to 250,000) and to add Civic Hybrid production, the plant’s second hybrid model, by early 2013. The Indiana plant added a second production shift in October 2011, creating 1,000 new positions and doubling the plant’s capacity to 200,000 vehicles per year.
- $166 million at the East Liberty, Ohio, auto plant for a 195,000-square foot expansion including new door and instrument panel assembly lines, an extended final assembly line and a new vehicle-quality department.
- $175 million and 100 new jobs at the Russells Point, Ohio, transmission plant to increase high-pressure die casting operations and to add a third line for production of advanced, efficient continuously variable transmissions for the 2013 Accord.
- $64 million at the Marysville Auto Plant for a 24,000-square foot expansion and new metal stamping capabilities. $800 million for a new automobile plant in Celaya, Guanajuato, Mexico, with an annual capacity of 200,000 units for the production of subcompact vehicles. The plant will employ 3,200 associates at full capacity and is schedule to begin Honda Fit production in 2014.
In addition to direct investments, Honda also works with approximately 500 U.S. OEM parts and materials suppliers, and purchased $14.4 billion in OEM parts and materials from U.S. suppliers in 2011. Honda has more than 600 parts suppliers in North America, with purchases expected to exceed $20 billion this year.