Honda Motor Co.
) will invest $215 million on infrastructural development for its
Ohio plant. With this money, the automaker will expand its engine
plant and build two training centers in the state.
Reportedly, the investment will create 60 jobs, of which 50
will be from Honda's other operations in North America. We
believe these investments would not only add operational
efficiency, but will also help revenue growth over the
According to reports, the company will spend around $180
million on its engine plant in Anna, Ohio, and the rest will go
in making two training centers at its assembly plant in
Marysville, Ohio. The training facility will be for auto assembly
workers and engineers, and will have an office space and heritage
centre to showcase Honda's historical achievements in North
Over the years, Honda has been increasingly focusing on its
infrastructural developments. This year in May, Honda announced
plans to manufacture the new version of its Acura NSX sports car
at a new plant in Ohio. The company will invest $70 million for
building the plant known as Performance Manufacturing Center,
located inside the former North American Logistics facility and
adjacent to Honda's existing facility in Marysville.
According to reports, the company has invested nearly $2.7
billion across North America. Among these investments, a notable
move for the company has been its partnership with
General Motors Company
) on developing next-generation fuel cell vehicles in order to
meet the fuel economy standard set in the U.S.
Both these companies aim to develop the vehicles by 2020.
Alongside experimental vehicle fleet, Honda and General Motors
already share more than 1,200 fuel cell patents between them,
filed between 2002 and 2012. We believe the alliance will bring
down their costs in building this expensive technology by sharing
each other's expertise and suppliers.
Honda retains a Zacks Rank #4 (Sell). Other stocks worth
considering in the auto sector include
Nissan Motor Co. Ltd.
Fuji Heavy Industries Ltd
), both having a Zacks Rank #1 (Strong Buy).
FUJI HEAVY ADR (FUJHY): Get Free Report
GENERAL MOTORS (GM): Free Stock Analysis
HONDA MOTOR (HMC): Free Stock Analysis Report
NISSAN ADR (NSANY): Get Free Report
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