Honda earmarks Civic for new plant in Indiana
While Honda's Chinese subsidiary is busy recalling more than half a million vehicles, Honda USA will be working on a new Indiana plant that will cost more than half a BILLION dollars. Coincidentally, both projects are scheduled to begin March 19. That's when Honda will break ground on its new $550 million facility in Greensburg, Indiana. Today it was announced that the plant will inititally build the Civic and be good for an additional 200,000 units annually. The new facility will additionally employ up to 2,000 workers.Although a Honda spokesman, David Iida, had no comment, experts seem to agree that the Civic will be the only car on the plant's menu for some time. "My strong belief is that Civic will be the first and primary product, and that more will follow after that," said Alan Baum, director of automotive forecasting for Birmingham, Mich. based Planning Edge. Although Civic sales were down last year, we told you earlier that Honda felt it was because of a lack of supply rather than demand. Honda's immediate move was to add Civic production to its Alliston, Ontario, plant. The East Liberty, Ohio plant will likely continue on as a source of Civics, as well.
[Source: Automotive News]
Reader Comments (Page 1 of 2)
Will S. 6:39PM (3/16/2007)
As someone who is from Indiana, I think this is great news. They certainly could use the jobs.
Having said that however I must add: that is going to make a metric assload of Civic production in this country. When do we reach the Civic saturation point?
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whofan 7:03PM (3/16/2007)
"Although Civic sales were down last year, we told you earlier that Honda felt it was because of a lack of supply rather than demand."
?
Can`t Honda build as many Civics as they did the year before?
Is it because the new Civic takes longer to build or is it because the Civic is built on a flexible line with another popular model, that is taking production capacity away from the Civic?
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whofan 7:08PM (3/16/2007)
"Having said that however I must add: that is going to make a metric assload of Civic production in this country. When do we reach the Civic saturation point?"
With yet another round of high gas prices starting this summer out. I think this is a good move. Continuing high gas prices I think will eventually break our resolve to drive big vehicles.
GMs` new 08 malibu should give the Civic a good run I hope.
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GreenDragon 8:00PM (3/16/2007)
Demand for the Civic is high through Asia and the America's. Massive demand in areas outside of the U.S. likely limited demand. Same for the Fit.
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GreenDragon 8:02PM (3/16/2007)
CORRECTION:
Demand for the Civic is high through Asia and the America's. Massive demand in areas outside of the U.S. likely limited SUPPLY. Same for the Fit.
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far jr 8:03PM (3/16/2007)
"Although Civic sales were down last year, we told you earlier that Honda felt it was because of a lack of supply rather than demand."
?
Can`t Honda build as many Civics as they did the year before?
Is it because the new Civic takes longer to build or is it because the Civic is built on a flexible line with another popular model, that is taking production capacity away from the Civic?
Posted at 7:03PM on Mar 16th 2007 by whofan
Whofan... I agree 100 percent. And I implore any Honda fan to tell me why. If they were down last year as Mr. Filipponio states, why are they down an additional 24 percent so far this year on top of all that? Sales are dropping and they are building a new plant? Odd.
Maybe that "hot selling" Fit is stealing sales. Averaging 2,301 a month and all. (sarcasm intended)
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whofan 8:17PM (3/16/2007)
I hope my question isn`t taken as a dig on Honda. It just doesn`t make sense the sales are do to lack of supply. Unless Honda is importing the Civic out of the US to satisfy world demand leaving a shortage here at home.
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geo.stewart 8:36PM (3/16/2007)
maybe outside the US, there is no supply but the US is flush enough. I can walk onto any lot around the southeast and see plenty of Civics waiting to meet their new owner. personally, i think it has to do with the fact that you can buy either a civic coupe or a scion tc for the same bucks and the tc is a better deal. or you can buy a mazda3 for less and get a better car. The new civic is much better than the car it replaces and now has looks but it still has no soul or personality. Now, I will take it over the other standard frontrunners such as corolla (until the new one arrives, finally) and the Sentra (Nissan should be ashamed of that design) but there are better cars out there for those willing to look. Honda is a product for the uninformed, selling on reputation only. Someone who actually wants something in return from their car will keep looking.
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dejal 9:27AM (3/17/2007)
CRVs are now built in the US instead of imported from England. I believe the Civic + CRV come off the same line in East Liberty. If that's the case, the plant is turning out MORE vehicles than before. Something had to give and the CRV most likely has a higher profit margin.
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goat 9:39PM (3/16/2007)
The Civic is one of the ugliest cars on the market today.
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Bryan 10:22PM (3/16/2007)
Uh..civic sales are way down here in the US. The Mazda 3 is about to take over its #1 spot in Canada. They are going to build them at this plant because why? They better think of something else fast. Sounds like money going down the toilet. I agree goat, the civic is one of the ugliest cars on the road. The last one was nothing to rave about but at least it was just plain and boring, this thing is hideous!
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Bryan 10:22PM (3/16/2007)
Uh..civic sales are way down here in the US. The Mazda 3 is about to take over its #1 spot in Canada. They are going to build them at this plant because why? They better think of something else fast. Sounds like money going down the toilet. I agree goat, the civic is one of the ugliest cars on the road. The last one was nothing to rave about but at least it was just plain and boring, this thing is hideous!
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MikeW 10:25PM (3/16/2007)
The civic is a terrible drive, it might get better mileage than the Mazda3.
People are finding out that MotorTrend just gives away 'car of the year' to about anything new.
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aznstuart 11:33PM (3/16/2007)
MikeW, The Civic won North American Car of the Year and World Car of the Year awards. What awards has the Mazda 3 earned? And, the Civic not only beats the Mazda 3 in fuel economy, it also beats it in saftey ratings and have you read about how easy it is to break into a Mazda 3. I wouldn't want one. And Mazda 3 sales were only about 9k units while Civics were 22k units, more than double the Mazda 3.
The Reason why the Civic production is short this year is because the New CR-V is now being built at the same plant as the Civic. Most of you know the CR-V is current America's best selling SUV and Honda achieved that by building more CR-Vs and less Civics. That is where the Civic sales went. Also, last year, almost 100,000 Civics were imported from Japan. With the high demand in Japan, imports have been slashed in half to only 50k units.
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aznstuart 11:30PM (3/16/2007)
MikeW, The Civic won North American Car of the Year and World Car of the Year awards. What awards has the Mazda 3 earned? And, the Civic not only beats the Mazda 3 in fuel economy, it also beats it in saftey ratings and have you read about how easy it is to break into a Mazda 3. I wouldn't want one. And Mazda 3 sales were only about 9k units while Civics were 22k units, more than double the Mazda 3.
The Reason why the Civic production is short this year is because the New CR-V is now being built at the same plant as the Civic. Most of you know the CR-V is current America's best selling SUV and Honda achieved that by building more CR-Vs and less Civics. That is where the Civic sales went. Also, last year, almost 100,000 Civics were imported from Japan. With the high demand in Japan, imports have been slashed in half to only 50k units.
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Bryan 11:38PM (3/16/2007)
Hey Aznstuart..here is some for ya...
http://www.mazda.com.au/articleZone5.aspx?articleZoneID=4485
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far jr 11:53PM (3/16/2007)
azn stuart... Looks like just another poor long term planning move by honda brass to allow one carline (CRV) to canibalize the resources needed to keep up with demand for another (Civic).
Why is the fit selling so many fewer units per month this year versus last years averages? Have they lost production capability? The Fit has been sold for years over seas. Why didn't Honda brass plan to meet US demand for the Fit... then again maybe Americas demand is only about 2500 per month.
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JarryHames 2:31AM (3/17/2007)
You Honda haters are so lame. The Civic sales are not down and the Mazda3 sucks. I've owned both Hondas and Mazdas and Honda beats Mazdas ass any day. The only thing that Mazda has over Honda is cooler designs. Their cars are cheap and cheap to buy. That may be the only reason that the Mazda3 is better than the Honda Civic. Resale value, safety, quality, and longterm reliability goes to Honda. You people are so predictable. Anything that says Honda or Toyota will attract haters. Get a life. Hating Honda and Toyota is so last year. Find a hobby or start hatin' on Ford for building that tacky ass Edge or that fugly Freestyle POS!
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far jr 9:31AM (3/17/2007)
Jerry Hames... Don't be a hater, get the facts for yourself... I didn't pull that 24 percent down figure out of thin air. I went to the Honda web site and read it from the sales report. You sir are the type that is soooo predictable. Defend Honda and Toyota to the death. Forget about facts... all we need is that golden perception!
http://www.hondanews.com/categories/1090/releases/3901
Honda builds great cars, they simply made a managerial mistep by not forcasting and allocating resources properly. Domestics would be eaten alive by "people like you" for mis-steps like this.
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Bob R. 9:47AM (3/17/2007)
Bryan, I didn't know the Mazda3 had won so many awards. I knew it won some but that is alot more than I would have thought. The 3 is a great car, and so is the Civic. But the way the Civics interior is designed with the digital speedometer on the top is ugly. Then look at the 3s and it is beautiful for a economy car.
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