Honda confirms $52m investment for Indiana CR-V production
Honda will spend $52 million to prepare its Greensburg, Indiana, plant for CR-V SUV production by early 2017, with a focus on facility upgrades and workforce training.
Honda has announced a $52 million investment in its Greensburg, Indiana, manufacturing plant to begin production of the CR-V compact SUV by early 2017. This move is part of the company’s broader strategy to expand its North American light-truck manufacturing capabilities and address the strong demand for SUVs in the United States.
Honda's $52 Million Investment in Indiana Plant
Investment Breakdown
| Category | Amount (USD) |
|---|---|
| Manufacturing site upgrades | $40 million |
| Training centre construction (20,000 sq ft) | $12.4 million |
Of the total investment, $40 million will be used to upgrade the manufacturing site in Greensburg. These upgrades are intended to prepare the facility for the addition of the CR-V to its production lines, ensuring the plant can handle the increased output and maintain quality standards. The remaining $12.4 million will fund the construction of a new, 20,000-square-foot training centre. This centre will focus on workforce development, providing both new and existing employees with the skills needed for the updated production processes.
Production Plans and Plant Operations
The Greensburg plant, which began operations in 2008, currently employs around 2,300 people and builds the Civic sedan, Honda’s third-highest-selling model in the US. With the addition of the CR-V, the Indiana plant will play a larger role in Honda’s North American manufacturing network. Production of the CR-V will continue at Honda’s East Liberty, Ohio, and Alliston, Ontario, plants. Meanwhile, the company’s Guadalajara plant in Mexico, which currently produces the CR-V, is set to shift to manufacturing the HR-V subcompact crossover in 2017. These changes are part of a broader plan to balance output across North American facilities and respond to ongoing demand for SUVs.
- Greensburg, Indiana: Will add CR-V production alongside the Civic sedan
- East Liberty, Ohio: Continues CR-V production
- Alliston, Ontario: Continues CR-V production
- Guadalajara, Mexico: Will shift from CR-V to HR-V production in 2017
Background and Market Context
Honda reached an all-time record for single-year North American auto production in 2015. The company’s decision to expand CR-V production in Indiana follows several years of strong sales, with the CR-V recognised as America’s best-selling SUV for four consecutive years. By increasing production capacity in Indiana, Honda aims to ensure a steady supply of its popular SUV to US consumers.
Consequences for Local Community and Industry
The creation of 100 new jobs and the construction of a training centre are likely to have a positive impact on the local economy in Greensburg, Indiana. The investment not only supports current employees but also provides opportunities for new workers to join Honda’s manufacturing team. As the plant increases its output, local suppliers and service providers may also benefit from increased business activity related to the expanded operations.
Honda’s investment in Indiana is part of a wider industry trend, as automakers continue to adjust their manufacturing strategies to meet the growing demand for SUVs and crossovers in North America. The company’s focus on flexibility and workforce development positions it to respond effectively to future shifts in the automotive market.
