Honda to Build More in Canada

Advancing towards its “2010 Vision” for North American automobile operations, in conjunction with a wider global strategy, Honda Canada Inc., is increasing its contribution to the Canadian economy by adding its third manufacturing facility to Ontario.
Scheduled to open in 2008, the new plant increases Honda’s commitment to Canada by an additional CDN$154 million (USD$140 million) and 340 new jobs.
The new engine plant will be located on a site neighbouring Honda’s two existing manufacturing facilities in Alliston, Ontario that produce 390,000 vehicles annually. At full capacity, the new engine plant will produce approximately 200,000 four-cylinder engines a year, supporting Honda Canada built vehicles.
“Honda proudly contributes a third manufacturing plant to Canada,” said Hiroshi Kobayashi, president and chief executive officer, Honda Canada Inc.
“Today’s announcement supports Honda’s global strategic manufacturing focus of bringing manufacturing and sales operations to the local market to better respond to customer needs.”
“Honda has a world-wide reputation for tremendous quality and continuous innovation. Canada and Canadian workers share that reputation, and I’m very pleased that Honda has recognized that by investing in a new Alliston engine plant,” said Maxime Bernier, Minister of Industry. “Today’s announcement represents not only the direct creation of hundreds of new manufacturing jobs, but also hundreds of other new jobs in the construction and auto parts sectors as the plant is built and comes on-line.”
“Honda’s unique greenfield investment in Alliston is one more vote of
confidence in our province and another boost for Ontarians who rely on a strong auto industry for their prosperity and quality of life,” said Joseph Cordiano, Economic Development and Trade Minister. “Honda’s third major investment in our province tells the world that Ontario is the best place to be when it comes to investing in automotive parts and assembly.”
To respond to flexible changes in the North American market and to meet Honda’s projected sales increase, local production in the U.S. will also be expanded to include an auto production plant with a capacity of approximately 200,000 units. Plant operation is scheduled to begin in 2008 and site selection has already entered its final stage. Expansion of the U.S. engine, transmission and powertrain component production in Ohio and Georgia is also part of corporate initiatives announced in a wider global strategy in Japan today by Honda Motor Co., Ltd. As a result, North American automobile production capacity will increase from 1.4 million to 1.6 million units in 2008.

Honda Canada Inc. began operations in 1969 establishing its first manufacturing facility in 1986, followed by a second plant in 1998. Honda
Canada Inc. employs approximately 5,100 Associates. At its two facilities in Alliston, Ontario, Honda of Canada Mfg. annually manufactures 390,000 vehicles and purchases two billion dollars of goods from Canadian-based suppliers.