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Honda Site
'More than a Factory'

American Honda Motor Co. broke ground on a new auto and engine plant in Lincoln, Ala., in April 2000, announcing that it will accelerate the production launch from the original timetable of April 2002 to late 2001, and invest an additional $40 million to add new production operations. This will bring Honda's total initial investment in Alabama to $440 million. "We are breaking ground for more than a factory," said American Honda Motor Co., Ltd. CEO Hiroyuki Yoshino. "We are breaking new ground with a unique comprehensive facility that will build vehicles and engines. And we are breaking new ground in our relationship with the people of Alabama."

Honda's main North American manufacturing presence has been in Raymond, Ohio, while its North American research and development takes place in Torrance, Calif. "We've been very concentrated in Ohio," explains Honda spokesman Jeffrey Smith. "Alabama is an excellent location in the southeast to spread our operations out around the U.S. The seismology is good. The weather is good. The people are great, and great people make great cars."

The decision to accelerate the start-up of mass production reflects the immense popularity of the Odyssey minivan introduced in the fall of 1998. "Stepping up the start date for production demonstrates how important this new facility is to Honda," said Mikio Yoshimi, Honda Manufacturing of Alabama's first president. "The fact that we will add several new operations to what we originally announced last year also demonstrates our commitment to Alabama."

Expanding on its original plans, announced May 6, 1999, HMA will add several additional operations, including stamping of steel body parts, plastic injection molding and low pressure die-casting. These manufacturing pro-cesses mean that more of the substantial vehicle and engine production operations will be performed in Alabama.

HMA will employ approximately 1,500 associates when it reaches its twin annual capacities of 120,000 vehicles and 120,000 engines. When completed, HMA will increase Honda's capital investment in the U.S. to more than $5.2 billion, increase U.S. employment to more than 20,000 associates and bring to 10 the number of major Honda manufacturing plants in North America.

Together with production increases at Honda's four other auto plants in the U.S., Canada and Mexico, HMA will help boost total North American auto production capacity to 1.16 million units by 2003.