As American Honda noted record year-end sales for the two vehicles now assembled in Lincoln, Honda Manufacturing of Alabama entered the New Year with a new level of responsibility.The Lincoln plant will become Honda’s largest North American light truck manufacturer, make its first model change, and become the sole producer of the popular Odyssey minivan in 2004.
This fall, all production of the Odyssey will shift from Honda’s plant in Canada to Lincoln to make room for production of a new sport utility truck, or SUT.
Honda’s SUT concept made its world debut Sunday at the North American International Auto Show.
"It’s beneficial not only to Honda Manufacturing of Alabama but to the Lincoln area to be the sole producer of the Odyssey minivan, which has just exceeded its sales records," said HMA spokesperson Mark Morrison. "The fact that we’ll be the sole producer of the Odyssey really speaks volumes about what the people in Lincoln are doing. It reaffirms the commitment Honda has made in the state."
Before it becomes the Odyssey’s sole producer, Lincoln’s $425 million second assembly plant will begin mass production in April, nearly doubling the facility’s employment to 4,300 associates and doubling its production capacity to 300,000 engines and vehicles – making it the largest Honda light truck facility in North America.
The Canadian facility has one assembly line dedicated to light trucks with a capacity of 195,000 vehicles annually.
"We will soon have the capability to produce light trucks flexibly among three production lines at two plants in Alabama and Canada," said Koki Hirashima, president of Honda of America Manufacturing, referring to the Lincoln expansion. "This will further enhance our ability to respond more flexibly and quickly to the needs of our customers."
Trial production of the Honda Pilot sport utility vehicle has already begun on Lincoln’s second assembly line, which will produce Pilots alongside Odysseys in 2005 because of its flexible, light truck platform.
The all-new 2005 Odyssey will first be produced on Lincoln’s original assembly line in fall 2004, marking the plant’s first full model change.
Honda’s new light truck debut came just before Honda released its 2003 sales records, which included good news for the Odyssey, Pilot and light trucks as a whole.
Both the Odyssey and Pilot hit an all-time sales high, with 154,063 Odysseys and 106,917 Pilots sold.
American Honda light truck sales were an all-time record of 529,718, up 29.4 percent from 2002. Honda Division light truck sales were also an all-time record of 472,437, up 32.6 percent from the previous year.
"Sales are coming very strong right now in the light truck market," Morrison said.
Lincoln produced 160,884 Odyssey minivans and V-6 engines in 2003, or 92 percent of all North American Odyssey production.
Honda of Canada (HCM) launched production of the Odyssey, Acura MDX and Pilot. The Pilot – like the Odyssey for the next several months – will be made on Canada and Lincoln to provide production flexibility for different models.
The SUT will be the sixth light truck model for Honda and Acura – joining the Odyssey, Pilot, Acura MDX, Element and CR-V.
The SUT is designed to combine a roomy and practical SUV-style interior and a pick-up style cargo bed.
"The pickup market is evolving to meet the changing tastes of a new generation of truck buyers," said Tom Elliot, executive vice president of American Honda Motor Co. Inc. "The Honda SUT Concept takes this evolution to the next level with higher levels of refinement and sophistication in a sporty and socially responsible package with Honda durability, quality and reliability."
In his year-end address, Honda Motor Co. President and CEO Takeo Fukui, said Honda would introduce the SUT and another new light truck product within the next three years to strengthen its position in North American markets.
He said the North American-made Odyssey, MDX and Pilot had contributed to strengthening the company’s foundation in North America and resulted in it being the first Japanese manufacturer to realize cumulative auto sales of 20 million and local production of 10 million in North America.
