Honda Will Expand Diecasting, Other Processes in Georgia

Transmission production underway

May 14, 2006 -- Honda Precision Parts of Georgia L.L.C. started production of five-speed transmissions at its new plant in Tallapoosa, GA, recently, and says it plans a further $50-million investment there to expand aluminum diecasting, machining, and other capabilities.

Total investment at the Georgia site will be $150 million after the expansion, according to Honda. The additional operations will increase the size of the plant from 250,000 to 350,000 ft2.

HPPG is Honda's thirteenth manufacturing operation in North America. The plan is for it to support, initially, production of Honda Odyssey minivans and Pilot SUVs at Honda Manufacturing of Alabama L.L.C. in Lincoln, AL. The assembly plant is about 60 miles to the west of the transmission plant.

At full capacity, HPPG will produce more than 300,000 automatic transmissions per year. HPPG president Nobu Sanui stated: "This additional investment reflects the dedication and commitment of our associates to build quality products for our customers and has made further expansion in Georgia the right choice for Honda."

Honda reports its investment in North American production, R&D, and marketing operations - including the Georgia transmission plant, now totals more than $8.5 billion. It has the capacity to produce 1.4 million cars and light trucks per year at five auto assembly plants in the U.S., Canada and Mexico.

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