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INSIGHT LINCOLN, Ala. - Honda plans to add 2,000 workers and a new assembly line at its Alabama plant, doubling its production capacity and underscoring its commitment to the state's burgeoning automotive industry. Along with the 150,000 new minivans or light trucks at the new assembly line in Alabama, Honda will increase production of light trucks at Honda of Canada Manufacturing by 30,000 and rework its Anna Engine Plant in Ohio to make 120,000 more V6 engines. The Japanese company's expansion announcement Tuesday came only three months after South Korea-based Hyundai picked a site near Montgomery for a $1 billion plant employing 2,000, which Louisiana made a last-minute effort to get. Those firms joined Germany's Mercedes-Benz and Japan's Toyota among major automakers opening plants in Alabama. At least 36,000 people now work in automotive assembly and supply jobs in a state where the industry barely existed a decade ago. Renee Simmons of Sylacauga, who works in engine assembly at the Honda plant, said Alabama's history in textiles prepared the populace for building engines and vehicles. "The background that a lot of people come from, we're used to working hard," she said. "That's a normal way of life for us, and we appreciate what we've got." "We pay attention to rules and do what we're told," said Felicia Thomas, who works in parts, procurement and inventory. "It's great to be working for such a complete company." Alabama is not alone in the South in claiming a stake in automotive manufacturing. Currently 10 car plants are located or being built in six Deep South states: Alabama, Georgia, Louisiana General Motors truck assembly plant in Shreveport), Mississippi, Tennessee and South Carolina. At Lincoln, Honda Manufacturing of Alabama will build a new $425 million unit that will increase production of light trucks and V6 engines from 150,000, a capacity peak which is to be reached in September, to 300,000 in 2004. The number of workers at the plant will nearly double to 4,300, Honda officials said. The Japanese firm also said it will increase annual production capacity in North America by 180,000 units - from 1.22 million to 1.4 million - by late 2004. Honda officials said the expansion was needed to meet high demand for its automotive products. The Alabama plant now makes Odyssey minivans, but it could produce Pilots or Acura MDXs, or a combination of the three, depending on market demand to be determined later. At a news conference that almost doubled as a gubernatorial campaign event, Democratic Gov. Don Siegelman and his Republican opponent, U.S. Rep. Bob Riley of Ashland, pointed to the state's work force as the reason for its new industrial profile. Masaaki Kato, president and CEO of Honda Manufacturing of Alabama, noted the expansion will occur in an entirely new assembly plant: "Though we are adding another building, creating another line, and hiring another 2,000 associates, we are still one company, one plant, one team."Alabama is expected to offer Honda about $90 million in incentives, mostly in tax breaks and worker training - about $45,000 per new employee - to help bring about the expansion. Siegelman declined to comment on the figure, saying he would discuss incentives at a news conference today. But, he said, "They were so modest I think people will be shocked."The company announced plans for its Alabama plant in May 1999, getting $158 million in tax breaks, land improvements and worker training. Production started in November 2001. In December 2001, the company said it was increasing its investment in Lincoln to create an additional 800 jobs and turn out 150,000 Odyssey minivans and engines a year instead of the 120,000 it originally projected.
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Source: Advocate - Baton Rouge
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