Honda Gets Set to Make Even Bigger Strides in North America

Honda announced plans to build a $140 million dollar plant in Alliston, Ontario, Wednesday, a production facility that is scheduled to be completed in 2008. It will be located near Hondas two existing manufacturing plants, increasing efficiencies.   The facility will create 340 jobs for the small town of 10,000. 

Allistons existing operations pump out about 390,000 vehicles each year. Honda says the new plant will have the capability to produce roughly 200,000 four cylinder engines annually.

"Honda proudly contributes a third manufacturing plant to Canada." said Hiroshi Kobayashi, president and chief executive officer, Honda Canada Inc. "[Wednesdays] announcement supports Hondas global strategic manufacturing focus of bringing manufacturing and sales operations to the local market to better respond to customer needs."

 

This news comes after auto parts Linamar Corp and Toyota both announced expansion plans that will create 3,000 and 1,000 jobs respectively in Ontario. Canadian automotive Analyst Dennis Desrosier told Canadas CTV that automotive assembly jobs in that country have remained relatively stable in recent years at about 45,000, while parts employment has grown from about 70,000 jobs to about 100,000 jobs.

Several politicians applauded Hondas move. In a written release Maxime Bernier, Canadas Minister of Industry stated, "Todays announcement represents not only the direct creation of hundreds of new manufacturing jobs, but also hundreds of other new jobs in the construction and auto parts sectors as the plant is built and comes on-line."

Meanwhile Joseph Cordiano, the countrys Economic Development and Trade Minister says the plans show Hondas confidence in Ontario. "Hondas third major investment in our province tells the world that Ontario is the best place to be when it comes to investing in automotive parts and assembly."

The new Ontario plant is part of Hondas North American expansion plan which the carmaker has dubbed "Vision 2010".  Honda Motor Company stated that it will also be expanding operations here in the U.S. While the exact location has not yet been announced, Honda unveiled that it will be investing $400 million to   construct a new Midwestern auto plant that will be in production in 2008.  The facility will employ more than 1,500 workers. It is estimated the operation will generate approximately   200,000 vehicles annually.  The facility will be Hondas sixth auto plant in North America. Honda officials say the operation will feature the carmakers most advanced, efficient and flexible production technologies and will have the smallest environmental impact of any Honda automobile plant in North America. Site selection for the new facility is almost done. 

"We are now in the in final stages of securing a site in the Midwest," Honda spokesman Jeffrey Smith told Bloomberg in a conference call today.

Koichi Kondo, COO of Hondas North American region and president & CEO of American Honda says this expansion is the needed next step.

"With nine consecutive years of record Honda and Acura auto sales in North America, we will now further strengthen Hondas foundation in North America to meet the future needs of our customers and fulfill the ultimate objective of our 2010 Vision."

Striving for a cleaner environment through better products is also part of the "Vision 2010" plan.   Honda will introduce an all-new affordable hybrid and bring a new diesel engine to North America.  Scheduled to be launched in North America in 2009, the new hybrid will be produced at Hondas Suzuka plant in Japan. The automaker says the car will have a target price lower than the present Civic hybrid and is estimating 100,000 units to be sold annually in Canada and the U.S.  The new diesel engine is based on current technology being offered in Europe. To be introduced in three years time, the four cylinder diesel engine will meet new United States emissions standards.

"We continue to experience record demand for Honda and Acura vehicles in North America," said Kondo, "To meet the needs of our customers and in accordance with our companys 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."