Honda to Raise Production of Fuel
Efficient Civics in North America
Photo: Honda
Honda will enhance its ability to
match flexible manufacturing capacity with market demand in a
move that will make it possible to increase North American
production1; of fuel efficient 4-cylinder Civic models in early
2007 by up to 60,000 units on an annual basis.
The most fuel-efficient car
company in America2, Honda is striving to meet demand for its
popular 4-cylinder passenger cars in a timely fashion, since
higher fuel prices rekindled consumer interest in fuel economy.
Key components of the plan include:
From February 2007, production of
Pilot sport utility vehicles in Canada will be gradually shifted
to Honda's Lincoln, Alabama plant. This will return the Alabama
plant's production to a full annual capacity of 300,000 vehicles
and engines and will make it the sole source for both Pilot and
Odyssey models after the shift.
From April 2007, production of
Civic Sedan models will be added for the first time to Honda's
Plant 2 in Alliston, Ontario, Canada, which has produced only
light truck models since opening in fall 1998. Plant 1 in Canada
already builds Civic Sedans and Coupes. The added Civic
production will not impact the plant's current production
capacity of 390,000 units.
.
Sales in the U.S. of the
hot Civic lineup are up 7.1% through September 2006,
over 2005, while overall passenger car sales (up 3.9%)
and light truck sales (up 8.2%) are leading American
Honda toward a 10th consecutive annual sales record and
a 13th straight year of increasing sales.
As previously announced,
Honda has added production this year of two light truck
models at its Ohio auto plants. Honda's East Liberty
Plant in Ohio began production of the all-new 2007 Honda
CR-V in September, and the Marysville Auto Plant began
producing the all-new Acura RDX in July, after building
only passenger cars since opening in 1982.
Increasing production of the Civic
will strengthen Honda's passenger car production in North
America and further its ability to meet strong customer demand
in a timely manner.
Currently, Honda builds Civic models at
two North American plants - the East Liberty Plant and the Alliston
Plant. Over the past few months, both plants have added overtime
production in an effort to meet customer demand.
Further, on June 28, Honda announced plans
to increase its North American capacity to by an additional 200,000
units with the construction of an auto plant near Greensburg, Indiana
for the production of 4-cylinder vehicles and a 200,000-unit engine
plant in Canada to build 4-cylinder engines. These plants are scheduled
to begin operation in 2008.
Honda began operations in the U.S. in 1959
with the establishment of American Honda Motor Co., Inc., Honda's first
overseas subsidiary. Honda began U.S. production operations in 1979.
Honda has invested more than $8.5 billion in its North American
operations with 14 major manufacturing plants, employment of more than
33,000 associates and the annual purchase of more than $16 billion in
parts and materials from suppliers in North America. Nearly 8 of 10
Honda and Acura cars and light trucks sold in America are produced in
North America.
