Honda Motor Co., Ltd. HMC announced that it will invest $52 million in its plant, Honda Manufacturing of Indiana. The investment will be used to increase the production capacity and manufacturing flexibility of the plant for the production of the Honda CR-V compact sport-utility vehicle. The automaker is undertaking this strategy to satisfy the rising demand for light truck models. This investment will help create 100 new employment opportunities.
In Jan 2016, Honda announced that the Indiana plant will start the production of Honda CR-V from the beginning of 2017. Apart from the production of Honda CR-V, the plant will continue producing the Honda Civic Sedan. Honda believes that this investment will improve the plant’s manufacturing flexibility and help it cater to customer demand for fuel-efficient passenger cars and light trucks.
Honda started operations in Indiana in 2006 with the opening of a facility in Greensburg. Honda Manufacturing of Indiana is the company’s fourth auto plant in the U.S. and the seventh in North America. This unit produces vehicles for the U.S. market as well as for export to markets outside North America. The plant has a production capacity of 250,000 vehicles per year.
Additionally, Honda showcased the new Associate Resource Center, which is a career development facility. This training facility is designed to improve the manufacturing skills of associates at the Indiana plant.
Currently, Honda carries a Zacks Rank #4 (Sell).
Stocks that Warrant a Look
Some better-ranked automobile stocks include Wabash National Corp. WNC, Federal-Mogul Holdings Corporation FDML and Superior Industries International, Inc. SUP. All the three stocks sport a Zacks Rank #1 (Strong Buy).
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