Honda’s Expansion Will Boost Casting Operations

N.American vehicle production increase raising demand for engines, components

May 17, 2006 -- American Honda Motor Co. Ltd., Torrance, CA, laid out plans this week to increase total North American vehicle production by 200,000 units to a total of 1.6 million/year by 2008. Among the various plans to achieve that goal will be an expansion of engine, transmission, and powertrain component production -- including casting operations -- at plants in Ohio and Georgia.

The $50-million expansion of aluminum diecasting and machining operations at the new five-speed transmission plant in Tallapossa, GA, was announced last week.

The entire effort to expand Honda’s power and drive components production is budgeted at $125 million. Honda states it will continue increasing local production of powertrain components, including transmissions. This includes investing $75 million in the Anna (OH) Engine Plant to increase the number and types of engine parts it produces, including engine components now supplied by Japanese plants. This plan involves constructing a new building at the site, and will lead to approximately 40 new jobs.

The larger frame of Honda’s plans involves a new, $400-million assembly plant at an unnamed site; and a new, $140-million plant to produce four-cylinder engines near Honda of Canada Mfg. in Alliston, ON. The Anna Engine Plant also will supply engine components for both of these new operations.

Also, Honda Transmission Manufacturing of America in Russells Point, OH, is completing a $100-million expansion to produce primary transmission gears, and in July it will begin producing high-precision gears.

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