GREENSBURG, Indiana -- Honda today announced plans to build a $550 million automobile plant on a 1,700-acre area in Decatur County, Indiana, near Greensburg, 50 miles southeast of Indianapolis. The plant would start mass production of fuel efficient 4-cylinder vehicles in fall 2008, with an annual manufacture capacity of 200,000 vehicles and employment of 2,000 associates.

The new Indiana plant, Honda's sixth auto plant and 14th major plant in general in North America, would assist boost Honda's total North American auto production capacity from 1.4 million units to more than 1.6 million units in 2008, produce Honda's employment in North America to more than 37,000 associates and augment North American capital venture to more than $9 billion.

"Honda's success in America has been based on our strong commitment to our customers," said Koichi Kondo, president of American Honda Motor Co., Inc., and chief operating officer of Honda's North America Region operations. "We believe the great state of Indiana has what we need to continue this success -- an outstanding community of people, excellent transportation systems, and the necessary infrastructure to support industry. It is an ideal location in the Midwest both for our network of parts suppliers and as a central location for all of our customers across the country."