April 8, 2008 -- Honda Motor Co. is making major changes in production in North and South America in a bid to enhance operating efficiency across the region. The automaker plans to have two plants - one in the U.S. state of Indiana and one in Argentina - come onstream in autumn 2008 and 2009, respectively, while bolstering output capacity at factories in Mexico and Brazil.
The reorganization of production channels has been prompted by a supply shortage of its Civic car. A new factory slated to start operations in Indiana this autumn with annual capacity of 200,000 units will mainly contribute to lifting output of the Civic. Also, Honda plans to shift output of the Ridgeline pickup truck from its Canadian plant to its Alabama factory in early 2009.
Honda's sales of the Civic in the U.S. in 2007 climbed 4.5% on the year to 330,000 units, 88% of which were produced in North America, with the remainder exported from Japan. Honda will start producing subcompact engines this autumn at a new facility adjacent to the Canadian automobile factory, with annual capacity of 200,000 units. Another key element of the move is to reinforce the Mexican factory to make it a major regional base. The Mexican plant is increasing its presence in North and South America, with the CR-V SUV added to its production list.
Abstracted from Nikkei Weekly
