June 28, 2006

Honda to build new plant in Indiana

DETROIT (Reuters) - Japan's Honda Motor Co. Ltd. said on
Wednesday that it plans to build a new $550 million U.S. auto
plant in Indiana and start production in fall of 2008.

Honda said the plant will be constructed in Decatur County,
near Greensburg, 50 miles southeast of Indianapolis.

Honda, the first Asian auto maker to build vehicles in the
United States, has outlined an aggressive growth strategy for
North America. The company plans for North American sales to
grow by 16 percent to more than two million vehicles by the end
of the decade.

The plant will begin production of 4-cylinder vehicles in
2008 with an annual production capacity of 200,000 vehicles.
The plant will employ 2,000 people, the company said.

The company declined to say which vehicle would be built in
the plant.

"The density of the supply base allowed us to choose this
location," said Larry Jutte, Senior Vice President, Honda of
America Manufacturing.

The new Indiana plant, Honda's sixth assembly plant and
14th major plant overall in North America, will help boost
Honda's total North American production capacity from 1.4
million units to more than 1.6 million units in 2008.