Greensburg Daily News, Greensburg, IN

Honda Central

June 30, 2006

Flexible production pays off for Honda and its many customers

Honda continues to expand the number of models and components it builds in North America by investing in flexible and efficient manufacturing operations that produce multiple car and light truck models on the same production line.

The associates at Honda understand that the key to continuing success is their ability to build what customers want in a fast-changing marketplace. To do this, Honda has invested hundreds of millions of dollars to implement its global New Manufacturing System, which has the flexibility to adjust models in production as market conditions change.

Installed at all Hondaís auto plants in North America including the new Indiana plant programmable electric welding robots are at the heart of the New Manufacturing System. Programmed for various models, the robots switch production from a Honda Element light truck, for example, to a Honda Civic sedan within minutes as part of their daily production schedule.

A standardized layout for the assembly lines in all Honda plants also allows associates to build a variety of products efficiently and without interruption, even for vehicles that vary in complexity. For vehicles that require additional manufacturing processes, such as four-wheel-drive components, assemblies go onto a sub-assembly line to build components that fit in with the main line

Standardization of the welding robots, assembly layout, as well as in other areas, also provides all Honda plants with similar production capabilities, giving Honda the flexibility to add products from one plant to another when needed to meet customer demand. For example, the Honda Accord was produced at the East Liberty Plant in Ohio for a brief period last year, and the Honda CR-V will be built at that plant later this year.

This flexibility, along with a focus on quality, speed and efficiency, sets Honda apart with a truly global motor vehicle production system. This flexibility allows global management of production capacity to match the types of products manufactured with what customers want to buy.

Honda began U.S. production operations in 1979. Prior to Wednesday's announcements, Honda had invested more than $8.5 billion in its North American operations with 13 major manufacturing plants. In addition to its own operations, Honda purchases more than $16 billion in parts and materials from more than 600 suppliers in North America. Nearly eight of 10 Honda and Acura cars and light trucks sold in America are produced in North America.

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Honda Central
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