June 29, 2006

Honda to build new automobile manufacturing plant in Indiana

Greensburg, Indiana – Honda has announced plans to build a US$550 million automobile plant in Decatur Country, Indiana, 80 km southeast of Indianapolis. The plant will begin mass production of four-cylinder vehicles in fall 2008, with an annual production capacity of 200,000 and employment of 2,000 workers. It is Honda’s sixth auto plant and 14th major plant overall in North America.

The plant is expected to help boost Honda’s total North American auto production capacity from 1.4 million units to more than 1.6 million in 2008 and increase employment in North America to more than 37,000 workers. The company sold 1,462,472 Honda and Acura cars and light trucks in the U.S. in 2005, its ninth straight year of record annual sales.

Construction is expected to begin in fall 2006 and take 24 months. It will feature flexible manufacturing and perform such functions as welding, stamping, painting, plastic injection moulding and assembly operations, with engines provided by the company’s Anna, Ohio engine plant. The plant will also employ advanced methods of energy and emission reduction, with the goal of becoming a “zero waste to landfill” factory.

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