Honda Honors Suppliers of Indirect Products and Services; Annual Purchases Exceed $1.4 Billion in Ohio and Indiana
6/13/2014 1:00:00 PM
Honda has honored 25 suppliers that provide indirect products and services to five Honda automotive plants in Ohio and Indiana. Driven by record auto production in North America in 2013, Honda also announced that its purchasing for Maintenance, Repair and Operational (MRO) services in this region set a record of more than $1.4 billion for the fiscal year ending March 2014.
The MRO purchasing milestone came on the heels of record Honda auto production and parts purchasing in Ohio and Indiana in 2013 with the production of 976,361 automobiles at it three auto plants in Marysville and East Liberty, Ohio, and Greensburg, Ind. MRO purchasing also supports operations of Honda's engine plant in Anna, Ohio and transmission plant in Russells Point, Ohio.
Different from suppliers that provide parts and materials for the mass production of Honda products, the more than 5,000 MRO suppliers support Honda plants by providing a wide variety of equipment, products and services that support the manufacturing of automobiles, as well as their engines and transmissions. These companies include local businesses as well as national companies, and many have grown along with the expansion of Honda's automobile manufacturing in North America since Honda began U.S. auto production at the Marysville Auto Plant in 1982.
"With a host of pinnacle products coming to market next year, and with record production and sales targeted in the coming years, Honda will continue to transform its business by advancing technology in our products and manufacturing operations to maximize joy for the customer," said Tom Lake, vice president for Purchasing and Cost Planning at Honda North America, Inc. "We thank our suppliers for the important role they continue to play in our success by bringing new ideas and value to our business."
In 2013, Honda manufactured a record 1.78 million automobiles in North America, which led to the purchase of more than $25.5 billion in parts and materials in the region from 650 parts suppliers, also an all-time annual record. Parts purchasing for Honda plants in Indiana and Ohio last year totaled $12.2 billion from suppliers in North America, including more than 200 in Ohio and Indiana.
More than 260 MRO suppliers for Honda plants in Ohio and Indiana attended the annual conference in Columbus for the awards ceremony, networking and professional breakout sessions. Developed to recognize world-class business characteristics, the 25 suppliers were honored for achievements in the categories of Special Recognition, Outstanding Value, Performance Excellence and Supplier of the year.
"The purpose of the awards is to recognize suppliers that are bringing us value and helping Honda to advance our capabilities and deliver a better vehicle to our customers," said Monica Oliverio, department manager of North American Indirect Procurement at Honda North America, Inc. "We want our suppliers to truly grow with us as we continue to expand and advance our operations in North America."
Bill Easdale, vice president of Honda of America Mfg., Inc. added that the involvement of both indirect and parts suppliers is important as Honda's North American operations take on new responsibilities to engineer and manufacture products for customers in this region and globally.
"In order to meet the responsibility of the lead role we have been asked to play in North America and to prepare for the next phase in our growth and evolution, we continue to invest in our business and our people," Easdale said. "We have a long-term commitment to Ohio and to all of our operations in North America, and this should give our suppliers the confidence to grow with us and to innovate with us, by bringing their best new ideas to Honda."
About Honda in Ohio and Indiana
Honda of America Mfg., Inc. employs 10,000 Ohioans at the Marysville Auto Plant, East Liberty Auto Plant and Anna Engine Plant, along with operations that support its manufacturing.
With capacity to produce 440,000 automobiles per year, the Marysville plant currently is producing the Accord Sedan, Coupe and Hybrid models, and the all-new Acura TLX Sedan. The East Liberty plant produces the Honda CR-V and Crosstour, and the Acura RDX, with capacity to manufacture 240,000 automobiles per year.
Honda's engine plant in Anna, Ohio has capacity to produce more than 1 million V-6 and four-cylinder engines per year, primarily for Honda's auto plants in Ohio, Indiana and Canada. In addition to production of these engines along with high-precision steel engine components, the Anna plant also manufactures sophisticated pulley components for Honda's continuously variable transmissions (CVTs).
Located in Russells Point, Ohio, Honda Transmission Mfg. of America, Inc. employs 1,125 associates and has capacity to produce more than 1 million automatic transmissions and CVTs per year. The plant also manufactures gear sets, four-wheel-drive systems and four-wheel-drive transfer components.
Honda Manufacturing of Indiana LLC employs 2,300 associates and has capacity to produce 250,000 vehicles per year. This plant currently manufactures the Civic Sedan, Civic Natural Gas and Civic Hybrid, along with the Acura ILX Sedan and Hybrid models.
About Honda in North America
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 16 major manufacturing facilities in North America, producing a wide range of Honda and Acura automobiles, automobile engines and transmissions, Honda all-terrain vehicles, power equipment products such as lawn mowers, mini-tillers and general purpose engines, and the HondaJet light jet, 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.
# # #