Posted on 05/16/2006 2:16:39 PM PDT by BurbankKarl
Honda Motor Co. plans to build a new automobile factory in North America, according to a news report Tuesday, as the Japanese carmaker tries to bring supply in line with surging sales.
The assembly plant would be Tokyo-based Honda's sixth in a region that accounts for about half the company's annual global sales.
The location of the factory is not yet decided but it is slated to open in 2009 with a capacity of 150,000 vehicles a year, the Nihon Keizai newspaper said, without citing sources for the information.
Honda spokesman Shigeki Endo declined to comment on the report, which he said was "just based on speculation."
Honda was scheduled to hold a news conference on an undisclosed topic Wednesday in Tokyo. Endo would not give details about the conference except to say "several" things would be announced.
Honda sold 1.65 million units in North America last year and forecasts sales to rise to 1.72 million units in the current year. The company now has annual production capacity of 1.4 million units in North America with five plants, meaning Honda must import autos to meet North American demand.
Honda has two plants in Ohio, and one plant each in Alabama, Canada and Mexico.
Endo said the company wants to keep its ratio of domestically-built autos steady at around 80 percent to the total sold in North America. The target implies that Honda has to somehow crank up North American output.
"We would like to boost both sales and capacity," Endo said, adding that no plans beyond this year have been announced.
Worldwide, the company sole 3.365 million units last year, and is forecasting sales to rise 9.7 percent to 3.693 million units in the current business year ending March 2007.
It is likely the new plant will be built near an existing one, and the new facility is expected to roll out such models as the Civic, and the Fit, a small, five-door model that the firm had been exporting from Japan, the Nihon Keizai said.
Under the expansion plan, the facility would eventually be fitted with a second production line to boost capacity to 300,000 units, which combined with other upgrades, could bring Honda's total North American output to 1.8 million vehicles -- about the same as that of larger rival Toyota Motor Corp., according to the newspaper.
Also toss in these are heavily low union membership or right to work states too.
Both are key in the formula for success in the modern economy.
Hey, that's right here in Utah. We have a thriving economy.
". . . and the profits go to the Japanese."
No, they go to the stockholders.
While exact figures vary, it appears roughly half or more of Honda stock is held by Americans.
Honda is a favorite of Pacific Fund-type investors and probably a component in about 1/4 of the American 401K plans.
See previous response.
I own both Nissan (on a domestic board, can't recall) and Honda (on Tokyo) stock directly, in fact.
True, but what they do not do, is fund Demoncrats. That counts for something.
No doubt they'll be building cars that are fueled with empty pizza boxes, Big Mac wrappers, and pig manure.
And besides you who do you think owns it? Americans or Japanese or who cares?
Too many American manufacturers missed the whole point with Deming. They would try to cherry-pick over his philosophy and use the parts they were comfortable with. They missed the synergy of the whole. It's an entirely different mindset, a new paradigm. Just taking the Statistical Process Control part and throwing away the management philosophy loses 80-90% of the power, IMO.
The gist of it seems to be this: everything that happens, good or bad, is the management's fault. They must accept responsibility for everything, because they make the decisions. If an employee screws things up, it's still management's fault, either because they hired the wrong person, didn't train him enough, or didn't fire him.
Hard to get Tundras the way I want them cheap --- and the local fleet manager is an idiot.
I want identical stripped trucks to spec --- white, 4 doors, family-style seating, vinyl seats, plastic floor, automatic, A/C, no radio, big shocks, skid plates, Rhino liner, etc.
These are oilfield trucks and spend their brief lives hauling heavy pieces of iron and very rough guys.
One year, 250K dirt road miles later, they generally die, screaming for mercy.
About half of Honda stock is owned by Americans.
It was a big deal in Japan --- the Americans were buying up their country, they cried.
True, but what they do not do, is fund Demoncrats. That counts for something.
And what if Honda was born in China and the profits went to the Chinese?
I find that very hard to believe. If you can show me the source that would be great. I'll look around myself
"And what if Honda was born in China and the profits went to the Chinese?"
"If"
And the American-built Hondas are almost 100% American-made components. Hondas are wonderful cars--innovative, reliable, fun to drive, economical, well-engineered, and they last forever. My family has had four of them--the latest two are now 11 and 16 years old and still start right up and go whenever you want them to. Drive a Honda and then get into an "American" car--cheap, tacky junk.
Unlike the big three, Honda will likely offer a decent future to the Americans they employ.
Yes, true.
I was in the area of Saginaw, Michigan last week.
Auto manufacturing jobs are an issue for many people there.
And I believe last week I read a report that the UAW wants to go on strike against Delphi auto part manufacturer, who IIRC is nearly or already is in bankruptcy.
I'm speechless.
Free Market Enterprise. A firm is not in the baby-sitting business.
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