$100 million facility will employ 400, assemble automatic transmissions

“Today, as we ‘shift into gear,’ and celebrate the start of construction, we also celebrate the start of a relationship with our new neighbors in the State of Georgia,” said HPPG President Nobu Sanui. “We hope that the strong foundation we build at this spot will symbolize the strength of our relationship with the people of this community.”

The 250,000-square-foot facility will be Honda’s 13th major plant in North America. Reflecting Honda’s strategy to base powertrain production near vehicle production for synchronous assembly, the plant will initially support production of Honda Odyssey minivans and Pilot SUVs at Honda Manufacturing of Alabama, LLC (HMA) in Lincoln, Ala., 60 miles west of the Tallapoosa plant.

“The name of this new company may be Honda Precision Parts of Georgia, but the key to our success will be Honda ‘precision people’ of Georgia,” said Akio Hamada, president and CEO of Honda of America Mfg. and head of manufacturing operations in North America. “Already we have seen that the people of Georgia have the enthusiasm, the work ethic and the capability to make this new company successful.”

Hiring for production positions at HPPG will begin later this year. Training for newly hired associates will be coordinated through QuickStart, a service of the Georgia Department of Technical and Adult Education.

Honda announced plans for the Tallapoosa, Ga., facility in November 2004 as part of a North American Powertrain Strategy, which includes significant investments to add production of high precision gears at a Honda’s Ohio transmission plant and key engine components at HMA.

As the new Georgia plant begins production, responsibility for the supply of transmissions for the Alabama plant will transfer from Honda’s Ohio operation to HPPG.

In Alabama, HMA started construction last month on a $70 million expansion that will add 100 new jobs to machine additional engine components at its existing engine plant operations. HMA began operations in 2001 and, today, has the capacity to produce 300,000 vehicles and V6 engines per year. HMA employs more than 4,400 associates and has a total investment exceeding $1.2 billion.

Honda currently has an annual production capacity of one million automatic transmissions in the U.S. The company has manufactured more than nine million transmissions in America since starting production of automatic transmissions at Honda of America Mfg.’s Anna, Ohio, Engine Plant in 1989.

Including the new transmission plant in Georgia, Honda’s investment in North American production, R&D and marketing operations will total more than $8.5 billion. Using domestic and globally sourced parts, 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.

Honda began operations in the U.S. in 1959 with the establishment of American Honda Motor Co., Inc., Honda’s first overseas subsidiary. Honda now employs more than 30,000 associates in North America.