HMA to Become Sole Production Source of Odyssey Minivan and Pilot Sport Utility Vehicle

LINCOLN, AL - Honda Manufacturing of Alabama will become the sole production source of both the Odyssey minivan and the Pilot sport utility vehicle and will return to annual full production capacity of 300,000 vehicles and engines in early 2007.

The return to full production at HMA comes as part of American Honda’s North American production adjustment to enhance its ability to match flexible manufacturing capacity with market demand.

The most fuel-efficient car company in America, Honda is striving to meet demand for its popular 4-cylinder passenger cars in a timely fashion, since higher fuel prices have rekindled consumer interest in fuel economy. Additional changes announced today will make it possible to increase North American production of fuel-efficient 4-cylinder Civic models in early 2007 by up to 60,000 units on an annual basis.

Key components of Honda’s plan include:

  • From February 2007, production of Pilot sport utility vehicles at Honda of Canada Mfg. will be gradually shifted to HMA. Both HCM and HMA currently share production of the Pilot, but the return of HMA to full annual capacity of 300,000 vehicles and engines and will make it the sole source for both Pilot and Odyssey models after the shift.
  • From April 2007, production of Civic Sedan models will be added for the first time to Honda’s Plant 2 in Alliston, Ontario, Canada, which has produced only light truck models since opening in fall 1998. Plant 1 in Canada already builds Civic Sedans and Coupes. The added Civic production will not impact the plant’s current production capacity of 390,000 units.

Honda’s successful business strategy for more than 50 years has been to match vehicle production to customer demand. Earlier this year, due to an imbalance of dealer inventories of some models, HMA’s daily production output was adjusted from 1,300 units to 1,150 units. With today’s announcement, HMA will return to daily production of 1,300 vehicles and engines in early 2007.

“These overall adjustments are designed for both Honda and HMA to maintain production flexibility in order to better meet customer demand,” said Ted Pratt, HMA spokesman.

HMA employs more than 4,500 associates at its Lincoln facility. In early November, HMA is scheduled to build its 1 millionth vehicle and engine. Additionally, HMA will mark its five-year production anniversary on Nov. 14, 2006. Honda’s investment in the 3.2-million-square-foot Alabama facility totals more than $1.27 billion.

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