May 17, 2006

Honda to build sixth North American plant

Tokyo, Japan – The Honda Motor Co. will build a new automobile factory in North America, aiming to start operations in 2009. It will be the company’s sixth auto plant in North America.

The plant, in a currently undisclosed location, will initially produce about 150,000 vehicles per year, or almost 10 per cent of the company’s North American sales. The company currently has plants in Ontario, Alabama, Ohio and Jalisco, Mexico, which have a combined annual production capacity of 1.4 million vehicles; Honda sells about 1.66 million vehicles in North America each year, and makes up the difference by importing vehicles from Japan. The new plant is expected to produce such vehicles as the Civic and Fit.

Honda also plans to construct a new engine factory in Saitama Prefecture, Japan, its first domestic plant in some 30 years. The facility will produce next-generation fuel-efficient gasoline engines, and gasoline/electric hybrid systems.

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