Honda Cars and Motorcycles

Honda Matures in the Industry

The Honda Manufacturing of Alabama LLC earlier announced a new $64.5 million expansion project. The project of the Japanese auto manufacturer, which is set to begin on May 1, is expected to create 20 new jobs.

The HMA’s new project also include 27,000 square feet of extra building space that will house and operate a steel banking facility alongside the present steel stamping lines. The project also covers the multi-million dollar expansion to continuously enhance Honda’s annual vehicle turnaround to more than 300,000 units.

“The addition of a steel banking facility will offer improved efficiency in costs, quality and delivery for our Alabama manufacturing operations,” said Mark Morrison, the manager of corporate affairs and communication for the HMA. “We believe the investment and additional employment offered by this new venture also will benefit our customers and the community.”

With a motion from the District 1 Commissioner Ed Lackey and a second from the District 5 Commissioner John Carter, the commission approved the tax abatement of the company for sales, use, and property taxes. Land abatements will last over a period of a decade for each piece of property and start on a property-by-property basis.

As estimated by experts, Honda will receive a $167,700 break from the annual amount of non-educational ad valorem taxes and $1,710,000 which has been abated from estimated construction-related transaction taxes.

The agreement stated that Honda and Talladega County each agree to pay its own costs and expenses related to the abatement. The county will not charge HMA a fee to secure the abatements and the company will continue to be primarily liable for the agreement to be carried out as stated. “Anything that will bring more jobs in for the county is a wonderful project,” said Commissioner Jimmy Roberson. “The abatements will go away, but those jobs are here to stay.”

HMA, at present, employs over 4,500 associates. In the state of Alabama, the company has a total of $1.3 billion investment. Since October 2006, the company has shown plans for a $91 million additional investment and this project will bring the manufacturing company to well over the $100 million mark.

Honda is most notable in the manufacture of both automobiles and motorcycles. But it is also famed in the manufacture of trucks, scooters, jets and jet engines, robots, ATV, water craft, electrical generators, lawn and garden equipment, marine engines, and aeronautical and other mobile technologies. The automaker, headquartered in Tokyo, produces state-of-the-art auto parts accessories like the Honda fender, engines, radiator, filter, and more.

About the Author

Katie Jones writes for a local newspaper and her beat involves the latest updates in the automotive industry. She is also working on her book on cars during her spare time.

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