Honda led the way among Japanese automakers in building in America back in 1982 long before the Yen appreciated from what was then more than Y240:$1 to today’s Y80:$1.
Honda announced today at the Automotive Press Association in Detroit that it is investing $40 million to increase annual capacity by 50,000 units to 250,000 vehicles. The strong Japanese Yen continues to be a good development for autoworkers as all Japanese firms are shifting production out of Japan.
Early in 2013 Honda will add to Indiana the Civic Hybrid, its most popular selling hybrid model in the U.S., which is its largest market. Indiana was the first Honda plant in North America to build a hybrid vehicle when it started Acura ILX Hybrid production in April of 2012.
Honda Manufacturing of Indiana will hire approximately 300 new production associates later this year in preparation for the increased production that will start early next year.
Including the current Honda Civic Natural Gas, Acura ILX Hybrid and future Civic Hybrid production, HMIN has a claim to have the most diverse alternative-fuel production capability of any plant in North America.
The Civic hybrid ($25,000-$28,000), is virtually identical in sharing mechanical components with the much more expensive Acura ILX hybrid ($28,795 – $35,000). However, because of its lighter weight, the Civic is rated at a much better EPA estimated 44 city/44 highway/44 combined.
Paired with the same Continuously Variable Transmission and a 1.5-liter gasoline engine and an electric motor (110 horsepower combined), the Acura ILX 1.5L Hybrid has an EPA estimated city/highway/combined fuel economy rating of 39/38/38 mpg, numbers that are achievable based on my test drives if the Acura trip computer is reasonably close to accurate. However, be sure to test drive what is an underpowered car.
These latest announcements follow the start of a second shift of production last fall at Honda Manufacturing of Indiana that added approximately 1,000 jobs.
Since late last year after recovering form the Japan earthquake and Tsunami parts shortages, Honda’s seven automobile production plants in North America have been operating at or above their full straight-time capacity, which currently totals 1.63 million vehicles per year. In addition to the new second shift at the Indiana plant, Honda’s plant in Marysville, Ohio resumed second-shift production on Line 1 late last year.
Last November, Honda Manufacturing of Alabama, LLC announced that it would increase capacity by 40,000 units to 340,000 light trucks per year, starting this fall. This increase, plus the additional 50,000 units at Honda Manufacturing of Indiana, will increase Honda’s North American auto production capacity to 1.72 million units per year. Additionally, Honda’s capacity in the region will total 1.92 million units after its new Mexico plant starts production of the critically acclaimed Fit sub-compact in the spring of 2014.
