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Corporate December
4, 2001 |
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| Honda Increasing Capacity, Investment and Employment at Newly Opened Auto and Engine Plant in Alabama |
LINCOLN, AL., December
4th, 2001 --- Honda Manufacturing of Alabama (HMA) today announced plans
for a 30,000-unit increase in production capacity to 150,000 vehicles and
engines per year by late 2002, raising Honda's investment in the facility
to $580 million and employment to approximately 2,300 associates. The announcement
came as Honda associates, Alabama elected officials and guests gathered
for the dedication of the new plant, which last month began producing the
class-leading Odyssey minivan and the V-6 engine that powers it.
"Looking at our customers, the demand for Honda products in North America
has left our dealers in short supply of models like the Odyssey, so we want
to set a new challenge," said Hiroyuki Yoshino, president and CEO of Honda
Motor Co., Ltd., who attended the event. "Already we are renewing the dream
here in Alabama. Only with new dreams and new efforts can we continue to
meet the needs of our customers."
With the phrase "Thanks to you, we made it" HMA president Mikio Yoshimi
offered individual expressions of gratitude to HMA associates, the construction
team, the plant's suppliers and the citizens of Alabama. "I am thankful
for the warm embrace we have received from this community," he said. "It
is this relationship that has sustained us through the challenges we have
faced thus far. Now, our continued growth means more people in Alabama will
find employment as Honda associates. And it means opportunities for our
associates here today to continue growing with the company."
Among the challenges achieved by Honda's new associates in Alabama was becoming
the first Honda auto plant in the world to assemble vehicles and engines
under one roof. To achieve greater efficiency and synchronization in manufacturing,
the V-6 engine and Odyssey final assembly lines are located together in
the HMA facility.
Honda announced plans to build a $400 million plant in Alabama in May, 1999,
based on a mass production start-up in April 2002, with plans to reach the
initial minimum employment of 1,500 associates and annual production of
120,000 vehicles and 120,000 engines in late 2002. At the April 2000 groundbreaking,
HMA announced it would invest an additional $40 million to add stamping,
plastic injection molding and low pressure die-casting operations and that
it would accelerate the production start-up to late 2001.
However, achieving the initial 120,000 unit capacity figure will actually
result in hiring approximately 1,900 associates -- with an initial investment
of $540 million due to a number of facility enhancements, higher construction
material costs, and the need to accelerate production start-up to meet customer
demand. Thus, the $40 million investment announced today to raise capacity
to 150,000 engines and vehicles brings Honda's total investment in HMA to
$580 million.
This latest investment will boost Honda's total North American auto production
capacity to 1.21 million units annually by late 2002 when HMA operation
reaches its full capacity. HMA also increases Honda's capital investment
in North America to more than $6 billion, North American employment to more
than 25,000 associates, and brings to eleven the number of major Honda manufacturing
plants in North America.
Honda is the world's preeminent engine-maker, and built more than 11 million
engines globally in 2000 for its diverse line-up of automobiles, motorcycles
and power products. Honda began operations in North America in 1959 with
the establishment of American Honda Motor Co., Inc., Honda's first overseas
subsidiary. Using domestic and globally-sourced parts, Honda began assembling
motorcycles in America in 1979, with U.S. automobile manufacturing starting
in 1982. Honda designs, manufactures and markets its products in North America
and worldwide. Honda currently builds products in 11 manufacturing plants
in North America, with three major R&D centers in the U.S. |
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