Honda Motors to upgrade US car plants
Honda to spend $355 million in Ohio plant upgrades
The massive and destructive earthquake that struck Japan has left the automobile industry in complete disarray. The supply chain management system of leading auto makers has been completely thrown off gear. Adding to their cup of woes, the exchange rate problems related to currency, has also affected leading car makers. All leading car makers including Honda have been troubled by the turn of events due to the massive earthquake.
Honda is trying to recover its losses incurred in Japan by concentrating and investing more on its North American car plants. This move has been hailed as positive and welcomed by the car industry in general. Honda plans to invest a whopping $355 million to increase its manufacturing capacity at Ohio in the United States.

Honda’s car plants in North America
Honda plans to pump in a good $166 million in to its car plant at East liberty. Honda has one more car plant at Marysville which would be receiving a good $64 million. Honda is making a huge effort to reinforce their car operations in the United States as their cars were the first to hit the roads of United States. The engineering facility of Honda at Raymond is also going to see improvements in its wind tunnel. But Honda has not declared the exact cost of the improvements to be carried out at Raymond.
The factories of Honda at North America are undergoing a complete makeover, with Honda planning to optimize their production at all their factories across North America. Honda faced a huge shortage of parts in March and this led to a 2.6 percent fall in the sales at United States in the month of July. The market share of Honda fell to 9.3 percent which at one time was a good 10.6 percent.
The manufacturing units and engineering facilities of Honda are highly advanced with the use of latest state of the art technologies. Honda opened its manufacturing units in United States much before the other giant car makers like Nissan and Toyota. This definitely gives an edge to Honda over other car makers. During the downturn, Honda also had to incur huge losses and its output across its car plants at Mexico, Canada and United States fell by 26 percent. Even in terms of car units, Honda which produced 754,807 last year could only manufacture 559,981 car units. Read more »

Posted August 27, 2011
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