It's official – Honda is coming to Greensburg

Wanda English Burnett and Cindy DiFazio

Honda Motor Company is coming to Greensburg - and that’s official.

At a capacity plus press conference held at the Greensburg Learning Center on Wednesday, June 28, the word was officially given that Greensburg is the location of the new North American Honda plant that will cost $550M. The 30-minute news conference was broadcast throughout the world via satellite. A number of television news stations were represented from major surrounding cities, along with a host of radio and newspaper reporters.

While the exact location of the plant that will be on 1,700 acres in Decatur County was not given, it was noted it will be northwest of Greensburg.

Construction of the new facility is set to begin this fall with production to begin in the fall of 2008. The plant is expected to employ 2,000 people and have an annual production capacity of 200,000 vehicles. The average pay would be $24 per hour, far above the regional and state averages.

“This is an important day in America and Honda’s history,” began Koichi Kondo, president and chief executive officer of American Honda Motor Co., Inc. as he addressed the crowd. He thanked Governor Mitch Daniels and his economic team that worked tirelessly with Honda. He said local officials also played instrumental roles in the project. Kondo continued by saying Greensburg had exactly what they were looking for including a great location and an “outstanding community of people.”

Kondo continued saying, “the great state of Indiana has what it takes for Honda, and is an ideal location in the midwest. Indiana showed the autonomy to determine how best to satisfy the needs of local communities.”

While Kondo would not say the exact vehicle that will be manufactured at the Greensburg plant, he said it will be a four-cylinder engine to meet the increasing customer demand for fuel efficiency. Referring to racing in Indianapolis, Kondo noted that the winner of last month’s race had a Honda engine in his car. He continued by saying all 33 cars had Honda engines and not one engine failure in the race. He said Honda is excited to join Indiana to become a team beginning a long race. “We look forward to crossing the finish line together." Kondo was applauded when he said, “Honda and Indiana - start your engines!”

Governor Mitch Daniels, who returned from his trip to Asia a day early to be at the announcing of Honda, said, “What a thrill to play a part.” He said Indiana’s economic future is bright with recent announcements of hundreds of jobs and now this. He noted that Honda will be providing the kind of jobs people are looking for - high paying, stable employment opportunities. “Honda treats its people and associates impeccably.”

The governor referred to the small town of Milan and noted that it stands for the Indiana ethic that says a kid from anywhere who works hard can do anything. He noted how he was in Milan, along with other small communities in the southern part of the state throughout his campaign efforts. He said when he recently returned to Milan he was told they were grateful for all the visitors they get because of the basketball team, but what they really needed was jobs. “For everyone in Milan, Osgood, Sunman, Cross Plains, Brookville (all across the southeastern portion of Indiana) this day is for you!” Daniels declared.

When asked about what incentives Indiana had offered Honda, Daniels noted while it was almost a footnote when discussing negotiations with Honda, tax credits, training assistance and real and personal property tax abatements totaled up to $41.5M. In addition, another $44M will be offered for infrastructure support for water, wastewater and road improvements. He said to accommodate future growth in the area, the state will expedite the long-sought interchange upgrade on I74 with water, wastewater, and other road upgrades to the tune of $56M. The governor noted that he felt the investment was “modest in comparison to the project.” He said that the upgrades will provide for future growth and encourage other companies to locate in the area.

That’s exactly what Robert Reiners, president of Ripley County Commissioners hopes suppliers will do - locate in the area. He was in attendance at the press conference and noted that while Ripley County government wanted Honda in their community, having it in Greensburg is still great. He said “every town in Ripley County has a designated area for industrial growth.” He further noted he hopes supply companies will choose to locate in Ripley County. He feels the impact from Honda being in Greensburg will be nothing but “good” for the economic growth of Ripley County as well.

Akio Hamada, president and CEO of Honda of America Mfg., Inc. talked about Honda’s significant commitment to limiting its environmental impact, not based just on regulations. Concerning its Indiana plant he said, “Honda’s goal is to leave the smallest environmental footprint of any plant in North America.”

Greensburg Mayor Frank Manus thanked local officials for their diligent work to help make Honda a reality in Greensburg. He gave a proclamation that June 28 and 29 would be proclaimed Honda Day in Greensburg, saying it was all “unbelievable and one of the wildest dreams I’ve ever had.”
Saying he had not been completely honest with news media who called him the day before the news conference, Manus noted that he can now say, “Honda is comin’ to town!”

Larry Jutte, senior vice president of Honda of America, noted that Honda’s philosophy is to respect the individual. “They empower their associates to use their minds not just physical skills,” he noted. He said he joined Honda in 1985 and right away noticed the unique way they do business. He noted that they utilize their workers to their full potential and place high value on their ideas and input. “Every associate has the opportunity to learn, progress and grow according to their individual abilities.”
Jutte said the location was a strategic calling card and said the “new plant will fit well into a seamless network with an economic benefit of $1.5 billion.” He said the governor’s input was critical in Honda’s decision-making. “He maintained Honda’s trust and confidence.” He also thanked the landowners saying, “We take this decision you made very seriously - you local people understand business and have common sense.”

Local landowners Linda and Gary Campbell were in attendance and said they were pleased to be a part of this “great opportunity for generations to come.”

While saying it was probably too early to say what the dollar impact will be on Greensburg, Governor Daniels did answer John London of Channel 5’s question with “We expect this to be a catalyst for growth triggering a second and third tier of economic growth.”

The biggest question was stopped before it could be asked - how do people go about obtaining employment with Honda? Noting that the plant was in the early stages, the employment issue will certainly be addressed at the appropriate time. Major operations at the Honda facility includes: stamping, welding, painting, plastic injection molding, sub-assembly and assembly, testing, quality assurance and shipping. Announcements will be made when the application process is ready and the community will be made aware.

According to information from Honda, the company achieved record U.S. sales of 1,462,472 new Honda and Acura cars and light trucks in 2005, the ninth straight year of record annual sales. The new plant in Greensburg is an effort to meet growing demand.

In attendance at the press conference State Representative Cleo Duncan noted that she was “elated about the decision to locate Honda in Greensburg.” In a written statement she noted, “Greensburg is my home, so I am naturally thrilled to have Honda become a part of our community. This announcement says great things about the caliber of workers and sense of community that we have in Southeastern Indiana. It also speaks volumes about the new direction our state is heading and its commitment to economic development. I thank Governor Daniels for his leadership and I thank Honda for its commitment to Indiana. I welcome Honda and guarantee they will be glad they chose Southeastern Indiana.”

State Senator Johnny Nugent said, “This is a great day for the entire southeastern Indiana region.” He projected the monumental achievement would create a domino effect where hundreds more jobs would be created.

WANDA ENGLISH BURNETT PHOTOS
ABOVE: Governor Mitch Daniels welcomes Honda to Indiana and more specifically to Greensburg at a press conference held at Greensburg on Wednesday, June 28. Seated on the right is Koichi Kondo, president and Chief Executive Officer of American Honda Motor Co., Inc. BOTTOM: State Rep. Cleo Duncan, left, congratulates landowners, Linda and Gary Campbell before the press conference began. She noted they and other landowners played an instrumental role in bringing the company to the area.