Honda to build new plant in Indiana
11:55 a.m. 06/28/2006 Provided by
DETROIT (Reuters) - Japan's Honda Motor Co. Ltd. said on Wednesday that it plans to build a new $550 million U.S. auto plant in Indiana and start production in fall of 2008.
Honda said the plant will be constructed in Decatur County, near Greensburg, 50 miles southeast of Indianapolis.
Honda, the first Asian auto maker to build vehicles in the United States, has outlined an aggressive growth strategy for North America. The company plans for North American sales to grow by 16 percent to more than two million vehicles by the end of the decade.
The plant will begin production of 4-cylinder vehicles in 2008 with an annual production capacity of 200,000 vehicles. The plant will employ 2,000 people, the company said.
The company declined to say which vehicle would be built in the plant.
"The density of the supply base allowed us to choose this location," said Larry Jutte, Senior Vice President, Honda of America Manufacturing.
The new Indiana plant, Honda's sixth assembly plant and 14th major plant overall in North America, will help boost Honda's total North American production capacity from 1.4 million units to more than 1.6 million units in 2008.
