Honda (NYSE:$HMC) has invested $267 million and is creating 300 new jobs. These projects began due to an expected increase in demand for the new 2018 Accord. The new model will be produced at the Honda plant in Marysville, Ohio.
The automaker unveiled the new model in July, when it became readily apparent that it was going to continue to focus on mid-sized sedans as opposed to their rivals shifting their interest to SUVs, pickups, and crossovers.
The new Accord boasts a bevy of new features including more safety options like standard collision avoidance braking, better fuel mileage, and of course, more horsepower.
The investment will be divided between the company’s Marysville and Anna plants, both in Ohio. The Marysville plant will receive $220 million, $165 of which will go to a new welding department with 342 welding robots. The investment will also allow the plant a capacity of 440,000 vehicles, allowing the plant to adjust to the fluctuating demands for the new Accord. The Anna, Ohio engine plant will focus its $47 million on creating turbocharged engines for the new design.
Despite not giving a sales report, the company is cautiously optimistic about the appeal of their new design.
The announcement follows an announcement by Toyota (NYSE:$TM) that they will be taking a 5% stake in their rival Mazda (OTCMKTS:$MZDAF) to formalize an alliance that will create a $1.6 billion plant and collaborations on future electric vehicles.
This announcement has surprised many investors, however, as weakening auto sales in the US have proven a specter for the industry. GM (NYSE:$GM) recently announced it would be cutting the third shift at many of its plants, while Ford (NYSE:$F) announced they would be moving Focus production from Mexico to China and that they would lay off 1,000 salaried employees.
Passenger cars have seen an overall decline in sales from 51.2% of the US market to 38.1% in the first half of the year.
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