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Honda to build manufacturing plant in Indiana
- June 28, 2006
- News Release
- Assembly and Joining
Honda today announced plans to build a $550 million automobile plant on a 1,700-acre tract in Decatur County, Indiana, near Greensburg, 50 miles southeast of Indianapolis. The plant will begin mass production of 4-cylinder vehicles in fall 2008, with an annual production capacity of 200,000 vehicles and employment of 2,000 associates.
The new Indiana plant, Honda's sixth auto plant and 14th major plant overall in North America, will help boost the company's total North American auto production capacity from 1.4 million units to more than 1.6 million units in 2008, grow its employment in North America to more than 37,000 associates, and increase North American capital investment to more than $9 billion.
Honda will announce additional details of its vehicle production plans at a later date. The new plant will have the same type of flexible manufacturing system that is found in the company's other auto plants in the U.S. and Canada, with advanced technologies that provide the flexibility to produce different models more quickly and efficiently. Major processes performed at the Indiana plant will include stamping, welding, painting, plastic injection molding, and assembly operations. Hiring plans will be announced in the coming months.
Honda first announced its plan to build a new auto plant as part of its May 17 announcement for the advancement of the company's "2010 Vision" for North American automobile operations. In addition to the new auto plant in Indiana, the North American plan also included the following new corporate initiatives:
- Construction of a new engine plant in Canada to begin production of 4-cylinder engines in 2008 with an investment of $140 million and employment of 340 associates.
- Expansion of U.S. engine, transmission, and powertrain component production in Ohio and Georgia, with additional investment of $125 million and additional employment of 80 associates.
- Introduction in the U.S. and Canada in 2009 of a new, more affordable, dedicated hybrid car.
- Introduction in the U.S. and Canada within the next three years of new 4-cylinder diesel engine technology that meets U.S. EPA Tier 2 Bin 5 emissions standards.
- Establishment of a voluntary goal to improve American Honda's Corporate Average Fuel Economy (CAFE) by five percent over 2005 levels by the year 2010.
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