Posted Nov 15th 2011 6:00PM
Honda seems to believe that North America's car-buying slump is coming to a close. According to Automotive News, the automaker has announced that it will spend US$84 million to grow engine and light truck production at its Lincoln, Alabama assembly plant. The money will be used to help create an additional 100 jobs and should see the facility increase its total output from 300,000 units per year to 340,000 in anticipation of a sales recovery in the United States. Automotive News suggests that may be a smart move. Consumer demand for new cars and trucks has grown by around 10 per cent through October of this year.
Honda expects that demand to translate into greater Odyssey, Pilot and Ridgeline sales. Each of those models is produced at the Alabama facility, though the Acura RDX may join that mix as part of the new investment.
The Japanese automaker has also said that it will resume its normal production schedule at its North American facilities as its supply line continues to recover from the impact of flooding in Thailand.