WASHINGTON (AFP) - Honda Motor Ltd said it will spend 270 million dollars to build a new plant in Georgia and upgrade two others in Ohio and Alabama as part of its effort to beef up powertrain production facilities in North America.
The Japanese automaker said it plans to open a plant in Tallapoosa, Georgia, 40 miles west of Atlanta, by fall 2006, producing automatic transmissions, at a cost of 100 million dollars.
The plant, the automaker's 13th in North America, will support production of Honda Odyssey minivans and Pilot SUVs at a facility in Lincoln, Alabama, 60 miles west of the Tallapoosa plant.
In Ohio, Honda will invest 100 million dollars in its transmission plant to prepare it to for the transfer of high precision gears work currently done in Japan.
The remaining 70 million dollars has been earmarked for upgrades to an Alabama engine plant operation that will take on work machining additional engine components.
The investment will create 600 jobs across three states.
Together, Honda's Ohio and Alabama engine plants have annual production capacity of 1.46 million automobile engines and supply all Honda and Acura vehicles produced in North America.
Honda now has the annual capacity to produce 1.4 million cars and light trucks in North America at five auto plants in the U.S., Canada and Mexico.
Nearly 8 of 10 Honda and Acura cars and light trucks sold in America are produced in North America as well.
11/10/2004 - 00:35 GMT - AFP