Alabama Honda plant plans $94 million expansion
Published: Tuesday, March 29, 2011, 5:30 AM
By Dawn Kent -- The Birmingham News The Birmingham News
Honda is expanding its Alabama auto factory, with plans to invest $94 million and create 20 new jobs at the facility in Lincoln.
The Talladega County Commission on Monday night approved tax abatements for the project, which is expected to be complete by mid-2012.
Although Honda did not pinpoint the reason behind the expansion, sales of the Odyssey minivan and Pilot SUV, both built in Lincoln, have been rising amid an overall recovery in the global auto industry.
The Japanese automaker, which now employs more than 4,000 people at the $1.5 billion plant, also did not specify much about the project itself, but said the work will include installing new equipment.
The project will increase production capacity and improve the flexibility of vehicle and engine manufacturing, said Mark Morrison, a spokesman for the Lincoln plant.
Since the March 11 earthquake and tsunami in Japan, automakers based there have been scrambling to secure the supply line for parts made in that country.
On Friday, Honda said it expects production schedules to be interrupted across its North American operations, including the Alabama plant, due to a lack of critical parts. The company has not said how much production time will be lost in Lincoln.