Honda Motor Co. laid out aggressive plans early today for increasing production in North America and rolling out more fuel-efficient vehicles.
The company said it will build a new assembly plant in the United States with vehicle production expected to begin in 2008. The assembly plant, Honda's sixth in North America, will be able to produce 200,000 vehicles a year. Honda sold 1.46 million vehicles in the United States in 2005, or 8.6% of the market.
Site selection is in the final phase, the company said in a release. A Bloomberg report said Honda would announce the location today.
The Michigan Economic Development Corp., the state's business recruitment arm, said Tuesday it would make a pitch for the plant if a site has not been selected. Gov. Jennifer Granholm, who is in Japan this week, already is trying to land a Toyota engine plant.
"We look for every opportunity to bring jobs to Michigan, particularly automotive," said Mike Shore, a spokesman for the Michigan Economic Development Corp.
Gov. Mitch Daniels of Indiana confirmed Tuesday that the state was actively trying to win the Honda factory. Meanwhile, Ohio officials said they, too, were talking to Honda about expanding its operations there.
In addition, Honda also plans to build its first new Japanese factory since 1976, which would also produce up to 200,000 vehicles a year; build a new engine plant in Canada near an existing facility; expand an engine plant in Anna, Ohio, and expand a transmission plant in Georgia.
At the same time, Honda also laid out an ambitious effort to broaden its offerings of environmentally friendly vehicles. By 2009 in the United States and Canada, the company plans to introduce a new, affordable hybrid car and a cleaner-burning diesel engine.
The new Honda hybrid would be priced significantly below the Civic hybrid, which starts at about $22,000. This lower price could improve Honda's chances of having a mass-market hit in the hybrid segment.
Honda also has set a goal of increasing its Corporate Average Fuel Economy by 5% over 2005 levels by 2010.
Already a leader in fuel-efficiency and hybrid technology, this new resolve could further Honda's position in this market and pay huge dividends if gas prices stay high.
Called 2010 Vision by the company, the manufacturing expansions and green-car initiatives combine to make a bold statement that Honda expects to continue winning U.S. customers for years to come.
"We continue to experience record demand for Honda and Acura vehicles in North America," said Koichi Kondo, chief operating officer of Honda's North American region and president and CEO of American Honda.
"To meet the needs of our customers and in accordance with our company's vision for the future, we will introduce new fuel-efficient vehicles and deepen our commitment to production in North America and we will do this in an environmentally resp
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