Honda revises North American business strategy to meet growing demand

TORONTO, July 9 /CNW/ - With demand remaining strong for both its light trucks and passenger cars, Honda announced today that it would further expand the manufacturing of vehicles and powertrains in North America. This will include establishing a second assembly line at Honda's newest facility in Alabama, which has a production capacity of 150,000 units, by 2004. Honda of Canada Mfg. (HCM) will invest a further $32 million CDN, at its facilities in Alliston, Ontario, to increase annual production capacity from 360,000 to 390,000 units by the spring, 2003.

- The number one assembly line at HCM will increase production capacity to 195,000 units by early 2003. It produces the Civic sedan and the Acura EL, an exclusive model for the Canadian market.

- HCM's number two assembly line will further improve its efficiency and innovations to increase production capacity to 195,000 units by the spring, 2003. It produces the Honda Odyssey, the recently launched Honda Pilot, and the successful Acura MDX.

"This enhanced investment in Canada signifies, once again, our commitment to Canada. It will also help us meet increasing demand for our cars and light trucks", said Shigeru Takagi, President and CEO of Honda Canada Inc. Honda has consistently followed a strategy of "small-born", which by definition has meant starting production in the local community on a modest scale and growing on a measured basis to meet customers requirements. In 1986 Honda became the first Japanese automaker to manufacture automobiles in Canada, with an initial capacity of 40,000 units. From this initial beginning Honda has continually expanded its manufacturing capacity to meet the growing needs of its customers. "Today's announcement to further increase our capacity to 390,000 units is just one more step in our growth and our commitment to satisfying the needs of our Canadian customers and dealers", said Takagi.

Honda Canada also exports Canadian made vehicles to the United States and Japan plus 10 other countries thus helping to fulfill the global requirements of Honda customers.

Honda, meeting the needs of Canadian consumers with a diverse line-up of automobiles, light trucks, motorcycles, ATV's, marine and power equipment.