The second quarter was not a good one for Honda. Supply shortages as a result of the debilitating earthquake in Japan and the subsequent tsunami resulted in a U.S. market share reduction from 10.6 percent to 9.3 percent. North American plants were impacted as well, as production dropped 26 percent from Q2, 2010.

While Honda's troubles have been severe, they're short term, and Honda has always been a forward-thinking company. That's why it should come as no surprise that the Japanese automaker is sinking $355 million into its Ohio facilities. The Detroit News reports that Honda will spring for $166 million in improvements to its East Liberty plant and another $64 million on a stamping press at the Marysville plant.

The automaker is also investing in its Raymond research and development center, with upgrades that include a new wind tunnel. Honda won't say exactly how much it is spending on the wind tunnel, but Frank Ohlemacher, a project manager at Ohio State's Center for Automotive Research, says tunnels range in cost from $25 million for a "half scale" model to over $100 million for a full-size tunnel.

The $355 million in upgrades doesn't include the $94 million Honda says it will spend modifying its Lincoln, Alabama plant and $800 million to build a small-car plant in Mexico.


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    • 1 Second Ago
  • 24 Comments
      gt2flynt
      • 3 Years Ago
      how about investing some of that money in making good looking cars again, just an idea
      billfrombuckhead
      • 3 Years Ago
      They're so forward thinking the new Civic looks like a used car right out off the assembly line! Interesting Honda spending more money in Mexico than the USA
        Rob
        • 3 Years Ago
        @billfrombuckhead
        Oh my the honda fan boys did not like that comment one bit...I thought it was pretty funny and not far from the truth
      DrEvil
      • 3 Years Ago
      Money would be better spent on a new design staff.
        AP1_S2K
        • 3 Years Ago
        @DrEvil
        oh i so agree, except i have to say i love the new odyssey and I drive an S2000
      • 3 Years Ago
      [blocked]
      Carlos Cruz
      • 3 Years Ago
      I wonder if that will add American jobs, since people here say that buying 'merican is the only way to do that.
        MAX
        • 3 Years Ago
        @Carlos Cruz
        If Americans would act like the Japanese by not buying foreign cars, we would have more and better jobs and a lower trade deficit.
          Sportbike
          • 3 Years Ago
          @MAX
          So Max, you are saying people in the USA should boycott all Chrysler products now that FIAT owns them?
          DrEvil
          • 3 Years Ago
          @MAX
          Patriotism is just a word that thrown around in america as a matter of convenience. The other side of the coin is that the beating that the domestics took from the imports, resulted in much better cars. I also once bought imports exclusively. Today, I have no need to. Too many really good domestic models to choose from.
          Rob
          • 3 Years Ago
          @MAX
          Dr.Evil is correct. GM and Ford have done a 180 as a result of this. Now the consumer wins
          maribell
          • 3 Years Ago
          @MAX
          If you need a small SUV, the Equinox is NOT the answer. First, it's butt ugly and the cheapest model comes in uglier colors than the CR-V. If you want red, you need to upgrade to a higher model. This is what turns me off Chevrolet. The FORD ESCAPE, it's a turd that should've been retired years ago. It's the # 1 selling SUV due to special deals. There will be a replacement coming soon based on the European FORD KUGA. Not sure what it will be called when it finally arrives. Anyway, in the meantime, if you want a decent small SUV, non-American is the way to go.
          • 3 Years Ago
          @MAX
          [blocked]
        • 3 Years Ago
        @Carlos Cruz
        [blocked]
      maribell
      • 3 Years Ago
      Will Honda invest in buying some new paint colors. I need a new sedan and will have to buy the upcoming TOYOTA CAMRY because of the gorgeous red color it will come in. I looked at the ACCORD and like everything except those drab colors. We have 3 Hondas already and Honda has used the same colors for years. Honda, what's wrong with making the 4 door Accord in a nice bright color? Is it that your robots don't have the capacity to hold more than a handful of drab paint colors? Is it that you guys bought a 100 year supply of Taffeta white, alabaster silver, midnight black and that dark blue. You have had the same colors since 2004. Change them and perhaps you can outsell the Camry which comes in at least 10 colors. P.S. BASQUE RED is maroon.
      Lunch
      • 3 Years Ago
      They need to spend money on designers cuz their designs are horrific.
      Durishin
      • 3 Years Ago
      Awesome! This means that Columbus, Ohio will continue to be one of the best sushi spots in the nation. Comin' to visit you, little brother!
        • 3 Years Ago
        @Durishin
        [blocked]
      maribell
      • 3 Years Ago
      Oh yes, on the CR-V, why is it available in bright blue and red in Europe and in the USA , it comes in dull colors. I own a 2008 in GLACIER BLUE. I chose that color because it was the least ugliest color that you made . I almost bought the RAV-4 but luckily for Honda, I hate the spare tire on the back. Honda, it's ok to give us Americans bright colors. Yes, it's ok.... We don't need to nearly identical shades of dark gray. Hopefully, the new CR-V will arrive in bright colors. The lease on my CR-V is due to end at the end of the year....No bright colors will equal a new RAV-4 in my driveway.
      • 3 Years Ago
      [blocked]
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