Honda to Build Plant in Indiana but Ohio Will Supply its Parts
by: Wahlberg
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Word Count: 363
John Miles, General Manager of
Florida Production Engineering’s Ohio plants
has witnessed how Indiana and Ohio competed for
Honda’s new assembly plant. But he knew that they would surmount whatever
trials that will come to the plant.
It is no secret that FPE has
auto parts manufacturing plant in Circleville, south of Columbus, and in the
Darke County Village of New Madison, which is 16 miles from the Ohio-Indiana
border. This is also one of the reasons why Miles is confident.
The announcement made by Honda
last June that it would build the $400 million plant in Greensburg
has somewhat disappointed many in the Buckeye State. Despite what happen the Ohio auto parts suppliers have console
themselves that Honda with its six North American assembly operations is still
near.
Ohio has by far the largest number
of parts suppliers to Honda’s North American operations. According to Honda
spokesman Edward Miller, Ohio has 140 Honda
suppliers, which is well above the 74 suppliers in Michigan
and its 53 suppliers each in Indiana and Kentucky.
Last 2006, Honda has paid Ohio suppliers with $6.4
billion which is a big bite off the $17.6 billion that the company paid for
suppliers nationally added Miller. In North America,
Honda has a total of 610 suppliers that provide them with auto components such
as Honda hood and auto accessories that are used by the
automaker in their auto making business. More than 500 Honda suppliers are
found in United States
scattered in and around central and western Ohio.
The New Madison plant is to
receive a $1.2 million state loan in a $3 million expansion expected to retain
70 jobs and create 35 others for the first three years of the plant. Both
expansions are intended to help the FPE to attract new business from Honda. At
present 30 to 40 percent of the company’s business is from Honda. The firm also
caters to the needs of General Motors, DaimlerChrysler, and other automakers.
The Madison
plant is where the company makes full wheel covers for Honda.
About the Author
Ally Wahlberg is a Computer Information Systems specialist. Ally leads an active lifestyle and he is a fan of extreme sports. He is also a car enthusiast and writing about his interests is one of his passions.
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