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| American Development and Manufacturing Operations Grow |
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| Honda established the HG-O (HG-Ohio Office) in July 1979 for providing technical consulting services to HAM and supporting the development of locally procured parts. Then, in April 1981, it became HRA-O (Honda Research of America, Ohio Office), whereupon it began its support of enhanced motorcycle quality and the development of Accord parts for local procurement. In September 1984, as part of a system designed to facilitate autonomous operation, Honda Research of America was renamed as Honda R&D North America (HRA). Furthermore, in May 1985, a branch office of EG was set up at HAM, and in April 1988, the office was incorporated as a local corporation Honda Engineering North America, Inc (EGA). HAM added the production of Civics in July 1986. By December 1989, a second automobile plant (East Liberty Plant) began operating nearby. Honda announced its Five-Part Strategy in September 1987, aiming toward further improvements in its North American corporate activities. This would involve the expansion of development and production in the U.S., as well as plants for exportation. Moreover, the strategy cited the goal of raising the local-content percentage from 60 percent to 75 percent by 1991. HAM has since become Honda’s largest manufacturing base, producing 695,000 completed motorcycles and automobiles and 900,000 engines yearly using North American globally-sourced parts, with the support of more than 10,000 associates. In fact, using both domestic and globally-sourced parts the local-content of HAM’s completed vehicles has reached more than 90percent by traditional measures. An Accord developed at HRA especially for North American market was manufactured at HAM in 1977. It was the fruit of teamwork comprising design, development, manufacturing, and sales systems in North America, quite independent of Honda in Japan. Thus, the new Accord had become an American car, and was embraced by people throughout the U.S. |
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