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Published June 28, 2006 07:41 am - Approaching $9 billion with the new plant near Greensburg, Honda’s North American capital investment has deep roots that extend far beyond the manufacturing plants.

Honda investment goes beyond manufacturing



Approaching $9 billion with the new plant near Greensburg, Honda’s North American capital investment has deep roots that extend far beyond the manufacturing plants.

In addition, Honda has established extensive motor vehicle design, research and testing capabilities in the United States through its R&D and engineering centers.

Through all of these operations, Honda associates in North America are developing new products for customers in North America -- from concept to engineering, to development and testing, and all the way into manufacturing. This capability is important, because it allows Honda to design and produce the unique products that consumers want in this part of the world.

Honda R&D Americas, Inc. has centers in California, Ohio and North Carolina, with each responsible for development of products leading up to manufacturing.1

In Torrance, Calif., the center conducts market research, product planning and styling for Honda products. The center in Raymond, Ohio, about 120 miles from Greensburg, employs nearly 1,000 associates who work closely with the plants and suppliers to engineer the styling concepts into vehicles ready for production. The Ohio center engineers many of the unique cars, light trucks and motorcycles produced in Honda’s North American plants.

The center in Haw River, N.C., does prototype development and design of power equipment products like Honda generators, snow blowers and lawn mowers that are manufactured at Honda Power Equipment in North Carolina.

With operations in Ohio, Alabama and Ontario, Honda Engineering North America, Inc. is responsible for research, development and engineering of production equipment and tooling for Honda automobiles, motorcycles and power products.

As with Honda R&D, Honda Engineering works closely with the plants and suppliers providing production engineering services, stamping and die-cast dies, plastic injection molds, equipment for welding and painting systems, powertrain machining equipment, forging and die-cast tools.

Honda Trading America Corp.’s operations in California, Ohio, Alabama and South Carolina support Honda plants and suppliers by coordinating the purchasing and management of steel, aluminum and plastic raw materials for Honda plants and suppliers.

All of these operations employing thousands of associates support the five Honda auto plants in North America, and will be supporting the new auto plant in Indiana as well.

In addition, other major Honda plants support the auto plants by feeding the "heart" of the vehicles to them – the powertrain, consisting of the engine, automatic transmission and drivetrain components. Honda has invested nearly $2 billion into engine and transmission plants in Ohio, engine production in Alabama and transmission production in Georgia.

This investment will increase with construction of a $140 million engine plant in Canada, a $75 million expansion of engine parts production in Ohio, and the investment of $140 million to expand transmission and gear production in Georgia and Ohio respectively.

Honda began U.S. production operations in 1979. Prior to today’s announcements, Honda had invested more than $8.5 billion in its North American operations with 13 major manufacturing plants. In addition to its own operations, Honda purchases more than $16 billion in parts and materials from more than 600 suppliers in North America. Nearly 8 of 10 Honda and Acura cars and light trucks sold in America are produced in North America.



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