P54
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Honda's Ohio plant changed competitive landscape in America
http://www.freep.com/article/20121028/BUSINESS01/310280143/Honda-s-Ohio-plant-changed-competitive-landscape-in-America
Thirty years ago, the first Accord rolled off the line at Honda's Marysville, Ohio, plant, the first car a Japanese automaker assembled in the U.S., changing the competitive landscape of American automaking forever.
From an underdog carmaker known in Japan as a cadre of engine geeks, Honda established a trust with young American consumers not unlike the way today's Millennial generation flocks to Apple stores. "They were seen as dirty-fingernailed motorcycle mechanics and got no respect in Japan," said Dave Cole, chairman emeritus of the Center for Automotive Research. "So they decided to grow elsewhere to become a strong international company."
Since those early industrial seedlings nurtured in what used to be Ohio cornfields, Honda's North American manufacturing network now spans seven auto plants in the U.S., Canada and Mexico with more under construction, in addition to its motorcycle and power equipment operations.
Honda has invested $12.3 billion in the U.S. -- $8 billion in Ohio -- employs more than 26,000 Americans and has never laid off a worker. Workers were retained and paid for months when Ohio plants cut production following the tsunami in Japan.
The original silver-gray 1983 Accord that rolled off the line Nov. 1, 1982, with a blue and white Ohio license plate "USA 001" is on display at the Henry Ford museum in Dearborn.
Though its world headquarters remains in Japan, Honda makes and sells more cars in North America than in any other continent. The seven plants can produce 1.63 million vehicles a year now and will boost annual capacity to 1.92 million vehicles when a new$800-million plant in Celaya, Mexico, starts production in 2014.
"It has had the most profound effect on the industry," said Michael Robinet, managing director of IHS Automotive Consulting in Northville. It wasn't just the introduction of Japanese culture, but philosophies and practices that helped establish new benchmarks for engineering, manufacturing and quality.
The competition made everyone's cars better.
"Honda showed a Japanese company could go into the American heartland and establish a non-union facility with unique and foreign work practices and suppliers and be successful and continue to expand over a quarter century," Robinet said.
Amid tremendous skepticism, "they showed American workers could build vehicles as well as other countries," he said. Workers were recruited primarily from rural communities, where many applicants tended to their farms before or after clocking out from the factory.
Honda will invest another $2 billion by 2014 in the U.S., Canada and Mexico and the roughly 900 engineers at Honda R&D Americas in Ohio are charged with developing global vehicles such as the next-generation Civic for 2016 and a new NSX sports car.
But the company's resolution to do everything itself when others outsource and form partnerships has raised questions about whether the strategy will continue to be a winning one.
Recently industry observers have attacked Honda's styling, which has never been particularly daring, as too bland. The new Civic is getting a hasty redesign.
Honda's three-decade journey began with former Ohio Gov. James Rhodes and Honda founder Soichiro Honda. Rhodes convinced Honda-san to start making motorcycles in Marysville in 1979. That led to a $3.9-billion investment and the car assembly plant that launched three years later.
Honda was fifth in automobile production in Japan and many auto executives in Japan thought Honda would stumble in America. But it established a beachhead that grew to include suppliers and engine, transmission and car plants in Ohio, Indiana, Alabama and Canada.
Jeff LaRoche, a 29-year veteran at Marysville, remembers pre-shift calisthenics and a lot more Japanese colleagues.
"We came in thinking we had a lot to prove. 'Could a bunch of farmers do it and prove we were as good as the Big Three, who had second and third generations of workers?' " LaRoche said.
They exercised to the theme of the "Magnum P.I." TV series.
"It looked pretty cool, like an army ready to build cars," LaRoche said.
The automaking aerobics are long gone and there are few Japanese colleagues today, but the melding of cultures remains.
"We view this as our company," said Rob Lee, a welding manager at Marysville with 29 years' experience. "We feel like we're separate. We're Americans, but there is a sense of pride being Honda."
John Spoltman, manager of the Anna Engine Plant, said the population of Marysville has more than doubled to 22,000 since 1982.
"We didn't want to overwhelm the area," Spoltman said. "We took pains to change truck routes out of courtesy to neighbors, who would have had headlights in their windows at all hours."
Nearby Highway 33 has gone from a two-lane road to what locals call the "Hondabahn."
"We don't look at whether we are a Japanese or American company," said Marysville plant manager Jeff Tomko. "The combination of Japanese culture, U.S. aggressive style, rural manufacturing and a hard work ethic has made it a success."
Honda was able to launch new models seamlessly back when Big Three plants had to be idled for months to retool.
"The Japanese couldn't build a plant for every model like GM. They had to build it all under one roof," Cole said.
The quick changeovers took stress off dealers who could sell down the outgoing models without deep discounts, and they received new models in quantities that allowed the sticker price to be close to the selling price.
"It was a game changer," said Tomko. "Folks wondered how we could do it and how we could do multiple models on one line. But in Japan, the mind-set is small is smart."
Employees grew with the plant.
Lee was 22 when he left a machine shop job in 1983 for Honda and an extra 15 cents an hour.
"The rumor was it was a good place to work. I was scared to death. I had never been exposed to an assembly line before and was worried about keeping up with the line speed." He lost almost 15 pounds and was sore the first few weeks, but he's still there 29 years later.
Monte Dyke is an engineer in the paint shop with 29 years of service.
"I was a snot-nosed kid from a local farm. It was a bit scary," Dyke said, especially the manual spot welding. "I got used to the manufacturing flow and routine and gained confidence. I was proud of what we did."
After 30 years, Marysville started building the ninth-generation 2013 Accord on Aug. 20, with new engines and transmissions from nearby factories.
The East Liberty plant makes the Honda CR-V and Acura RDX.
Marysville represents a$4-billion investment to date. About 4,800 workers make 1,760 Accords and Acura TLs a day.
Anna is Honda's largest engine plant with 2,600 workers and 80 assembly lines snaking across 2 million square feet, which insiders nicknamed "Disneyland for engineers." Within this mini industrial city, Honda workers melt scrap material in foundries and do stamping, casting, machining and engine assembly. Anna will make the engine for the new NSX due about 2015. It will be almost a hand-built engine on a separate, showcase line, Spoltman said. Working on it will be a reward for the workers who get the assignment. More details, including the location of the plant to make the NSX in Ohio, are expected to be revealed later in November.
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S600=Dream
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This is terrific journalism, and a great write up. Thank you very much for sharing, P54.
It's also exciting new for Honda enthusiasts, because now we know that the engine for the NSX will be something really special!
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BachelorFrog
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P54 wrote:
Honda will invest another $2 billion by 2014 in the U.S., Canada and Mexico and the roughly 900 engineers at Honda R&D Americas in Ohio are charged with developing global vehicles such as the next-generation Civic for 2016 and a new NSX sports car.
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Thats great news. I hope its class-killer.
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RolledaNsx
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It's going to be fun at the press release at the LA Auto Show in November.....
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CivicB18
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I know the NSX will have a V6 as well as 3 motors but I'm reay curious as to the output of the total package and how sustainable the output will be.
Given the fact the engine will be hand built I'm thinking it will be a clean sheet design with only the transmission and motor components shared somewhat with the 380hp RLX. I'd really like to see something in the 570-600hp+ neighborhood as that's where the current competition is and they will be becoming more powerful by the time the NSX is available.
My wishlist would be a DOHC twin turbo 3.5L DI V6 connected to a 7DCT along with the 3 electric motors. I could see Honda getting well over 600hp with that setup.
~Patrick
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xBeastx
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BachelorFrog wrote:
P54 wrote:
Honda will invest another $2 billion by 2014 in the U.S., Canada and Mexico and the roughly 900 engineers at Honda R&D Americas in Ohio are charged with developing global vehicles such as the next-generation Civic for 2016 and a new NSX sports car.
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Thats great news. I hope its class-killer.
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Next generation? Don't they mean the MMC? They can't surely run the 9th generation for only 4 model years (2012, refreshed 2013, 2014, 2015)??? That's also too late for the NSX. Halp.
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FiSH-Chan
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xAbSoLuTexZeRo wrote:
Next generation? Don't they mean the MMC? They can't surely run the 9th generation for only 4 model years (2012, refreshed 2013, 2014, 2015)??? That's also too late for the NSX. Halp.
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Some time ago, I read somewhere on here that they are going back to 4 year cycles like the Old Honda days. Of course, with this Civic suddenly have to change, maybe they will have to change that schedule, but someone correct me if I'm wrong.
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P54
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More news from Honda:
http://www.independent.ie/lifestyle/motoring/honda-turns-teacher-and-trains-you-into-getting-the-most-out-of-its-crv-3276732.html
Also on the way is a smaller SUV model; a Civic estate model; a high-performance Type R; six new engines; three new transmissions (CVT and double clutch); and two hybrid system models, all part of the new 'Earth Dream' technologies that Honda has espoused.
Since the company dropped out of Formula 1 racing the 600 engineers and designers involved in that programme have been drafted into worldwide R&D for cars.
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BachelorFrog
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P54 wrote:
three new transmissions (CVT and double clutch); |
hmm...whats the other other transmission? 6A or 9A?
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BachelorFrog
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why there is no edit button? >.<
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Chris David
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xAbSoLuTexZeRo wrote:
BachelorFrog wrote:
P54 wrote:
Honda will invest another $2 billion by 2014 in the U.S., Canada and Mexico and the roughly 900 engineers at Honda R&D Americas in Ohio are charged with developing global vehicles such as the next-generation Civic for 2016 and a new NSX sports car.
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Thats great news. I hope its class-killer.
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Next generation? Don't they mean the MMC? They can't surely run the 9th generation for only 4 model years (2012, refreshed 2013, 2014, 2015)??? That's also too late for the NSX. Halp.
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I hope it's true. Clearly they put little effort in going from gen 8 to 9. Hopefully they take the money they saved and invest it in a 10th gen Civic that blows everyone away.
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DCR
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I wouldn't be surprised if Honda hits the fast-forward button on the 9th Gen Civic and gets that black eye the hell out of here. I am quite sure the pen has hit the paper on the new model and the sooner the better.
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superchg2
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DCR wrote:
I wouldn't be surprised if Honda hits the fast-forward button on the 9th Gen Civic and gets that black eye the hell out of here. I am quite sure the pen has hit the paper on the new model and the sooner the better.
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No hope for the improved 2013's?
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CivicB18
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I think Honda can't substantially revamp the 9th generation during it's MMC as there are too many improvements that can be made. Instead of making a substantial investment for a car that will only be on the market another 2 year Honda's simply going to address things the automotive press and consumers complained about. Things such as design, material quality, ride/handling and tactile performance were widely criticized and all probably will be addressed.
Even though we've all criticized the Civic for it's carry over and lackluster drivetrains, the current will be offered until the 10th generation is available and that car should have a similar impact on it's segment like the 9th generation Accord is having currently. The rest of the Honda lineup should eventually enjoy the same or even better level of product development and execution as the Accord.
~Patrick
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S600=Dream
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Here's something--
Is the NSX only going to be offered with the DSG transmission?
I sincerely hope not.
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Colin
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S600=Dream wrote:
Here's something--
Is the NSX only going to be offered with the DSG transmission?
I sincerely hope not.
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I would imagine it's impossible to synchronize the operation of the transmission mounted electric motor with the variability of a human working a clutch unless it was like the current IMA setup. And since we sort of know that the new setup will be different, it makes sense that the MT would be a victim of this progress.
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BachelorFrog
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According to some rumors, Honda will also make a non-hybrid RWD NSX. Maybe it will have 6MT.
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Colin
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BachelorFrog wrote:
According to some rumors, Honda will also make a non-hybrid RWD NSX. Maybe it will have 6MT.
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That would make sense. I still hope for something in the ~50-60K range and 40-50K would be even better.
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RolledaNsx
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Bad news or the facts of todays supercar market.
A $150,000 + sports car will not have a MT!
Now in the old days when MT was faster than AT there would a case but now that DCT trans are so much faster there is no case today.
In todays market about 5-10 % would buy a MT Supercar but when your only going to be selling 1000-2000 max a year why spend the money to design two transmission?!
You already know your going to make no profit on it so why waste more money that could be used somewhere else
Porsche,Ferrari and McLaren are going this route too.
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superchg2
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I guess it's just nostalgia for the good ole' days of stick shifts.
Especially with Honda's sticks having some of the best shifting out there!
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BachelorFrog
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I wonder why Porsche took all the trouble in making 7 speed manual when they gonna phase it out in the future.
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RolledaNsx
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Porsche make how many sports cars a year?
A 7sp mt make since for their lower level cars.
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S600=Dream
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The manual, cheaper, N/A version would be great.
Very much in the spirit of the old car, and very, very cool.
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BG
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Colin wrote:
S600=Dream wrote:
Here's something--
Is the NSX only going to be offered with the DSG transmission?
I sincerely hope not.
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I would imagine it's impossible to synchronize the operation of the transmission mounted electric motor with the variability of a human working a clutch unless it was like the current IMA setup. And since we sort of know that the new setup will be different, it makes sense that the MT would be a victim of this progress.
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There's a report saying the new ctr could be offered with an 8 speed dsg :)
http://www.worldcarfans.com/112102549815/2015-honda-civic-type-r-to-have-250-hp---report
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DrWhiner
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According to AE [the source of WCF]:
Honda also has an eight-speed dual-clutch automatic transmission under development, which could be offered in the new hot hatch.
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BachelorFrog
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HAHAH! 8sp DCT...thats so not happening.
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CarPhreakD
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BachelorFrog wrote:
I wonder why Porsche took all the trouble in making 7 speed manual when they gonna phase it out in the future.
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The main reason is because it's heavily based on the 7DSG. It cost them very little to offer the 7 speed, so why the heck not?
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RolledaNsx
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NSX is getting closer to be.
Honda is building the new line at Anna for the engine and the new line at Russell Point for the duel-clutch transmission.
Now we will find out at the LA Auto Show if the top of Line
RLX gets the new DOHC V6 too?
Honda hasn't said want engine it will get...
only want the FWD Model will have.
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sa3eedi
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Which new DOHC v6?
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Mikeydred
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Interesting tidbits from the winter edition of Acura Style.
As we know FWD RLX to debut early next year, surprisingly SH-AWD will not be released until Fall 2013. As Rolled hinted could be DOHC, article says all new direct injected V6 delivering 370 plus (would they call it new if it was the same hardware used in the base model). When I was at the NY show this past April the representative already stated the RLX would share hardware with the NSX, this would explain the delay, but is Acura shooting itself in the foot by releasing the FWD version first. Unless they believe PAWS is that good because it will be tested against RWD counterparts.
Also, for those of you who were wondering if the premium sound system was ELS, no it will be supplied by Krell Industries, which appears to be the first automobile application.
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