Honda Parts Purchasing Surpasses $300 Billion in North America
4/23/2014 11:00:00 AM
Honda honored more than 100 automotive parts suppliers in North America for outstanding performance in 2013 at its 30th Supplier Conference last week, and announced that Honda has purchased more than $300 billion in parts and materials from its more than 650 suppliers in North America during the 35 years since Honda began building products in the region.
The purchasing milestone came on the heels of record Honda auto production and parts purchasing last year in a region where Honda manufacturing continues on a growth trajectory. In 2013, Honda manufactured a record 1.78 million automobiles in North America as parts purchasing in the region exceeded $25.5 billion for the year, the most ever.
"Over the next three years, Honda will continue to transform our business, advancing technology in products and manufacturing in North America to maximize joy for the customer," said Chitoshi Yokota, senior executive vice president of Honda North America, Inc. "Together, Honda and our suppliers can support Honda's goal to become a truly global company by becoming a truly self-reliant regional company here in North America."
Today, more than 650 domestic OEM suppliers ship parts to 14 major manufacturing facilities in North America, producing a wide range of Honda and Acura automobiles, automobile engines and transmissions, and Honda all-terrain vehicles. Utilizing a separate supply chain, Honda also manufactures power equipment products such as lawn mowers, mini-tillers and general purpose engines in North Carolina. Honda has invested $2.7 billion in recent years to expand auto production capacity and implement new technologies.
In addition to supporting increased production, suppliers are being called on to support Honda's new responsibilities in the region to increase exports and lead the launch of global products, such as the Civic, that Honda manufactures in markets around the world.
"With significant growth in our production over the next three years, driven by heavy new model activity in North America, we will continue to collaborate with suppliers to deliver leading edge technologies and the highest quality products," said Tom Lake, vice president of North American Purchasing and Cost Strategy.
Honda Honors 65 Top Suppliers in the U.S., Canada and Mexico
During its annual conference, Honda honored 65 top OEM suppliers for their excellence in one or more of three key categories Quality, Delivery and Value based on their outstanding performance in 2013.
This includes five suppliers that excelled in all three categories: American Leakless Company, LLC, Athens, Alabama; CTS Corporation, Elkhart, Ind.; KTH Shelburne Mfg., Shelburne, Ontario, Kumi Canada Corp., Bradford, Ontario, and TS Tech USA Corp, Reynoldsburg, Ohio.
Honda also honored four suppliers that in the past year that overcame extraordinary operational challenges to support Honda production: Asama Coldwater Mfg., Inc., Coldwater, Mich.; Bridgestone Americas Tire Operations, Wilson, N.C. and Wuxi, Jiangsu, China; ITW Shakeproof Automotive Products, Elgin, Ill., and NS International Ltd., Sabina, Ohio.
In addition, Honda presented its Corporate Citizenship Recognition to Rainsville Technology, Inc. of Rainsville, Ala., for demonstrating an exceptional commitment to social responsibility. This recognition is based on leadership in the areas of health and safety, diversity, community involvement, ethics and compliance, and the environment.
Purchasing Impact Where Honda Has Manufacturing Operations
|Location||No. OEM Suppliers||2013 OEM Parts Purchasing|
|South Carolina||38||$534 million|
|North Carolina||45||$496 million|
49 Honda Service Parts Suppliers Recognized for Outstanding Performance
In addition to the OEM supplier awards, Honda honored 49 suppliers for outstanding performance in supplying Service Parts that serve the needs of customers after they have purchased Honda and Acura vehicles. American Honda provides service and accessory parts for the nearly 20 million Honda and Acura automobiles in operation in the United States today.
Honda Service Parts suppliers provide customers with top-quality service parts in a timely manner and at competitive prices for the maintenance and repair of Honda and Acura customers' vehicles. They were rated on their performance in quality, cost and delivery. Distinct from the OEM supplier awards, an overall score is based on the combined performance in all three categories.
The company manages a national network of warehousing and distribution facilities that deliver high-quality, high-value service parts to 1,300 Honda and Acura dealers nationwide, who consistently rank American Honda as managing the best parts operations in the automobile industry.
Honda purchased nearly $1.26 billion in parts from its Service Parts suppliers in North America last year.
Honda established operations in America in 1959, and now employs more than 39,000 associates in its North American sales, R&D and manufacturing operations with a capital investment of more than $16.3 billion.
Based on its longstanding commitment to "build products close to the customer" Honda operates 15 major manufacturing facilities in North America, producing a wide range of Honda and Acura automobiles, automobile engines and transmissions, Honda all-terrain vehicles, and power equipment products such as lawn mowers, mini-tillers and general purpose engines, using domestic and globally sourced parts.
Eight Honda auto plants in the region, including four in the U.S., have the capacity to produce 1.92 million automobiles each year. In 2013, 94 percent of the Honda and Acura automobiles sold in the U.S. were produced in North America. Those plants today manufacture 11 different models, including four passenger cars and seven light trucks.
A fifth U.S. auto plant, the Performance Manufacturing Center, is under construction in Marysville, Ohio, and next year will become the exclusive global production location for the next generation Acura NSX.
Honda operates major research and development centers in the U.S. that fully design, develop and engineer many of the products Honda produces in North America.
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