ATLANTA, GA-Honda Motor Co. (Tokyo) has announced it will build a $100 million plant in Tallapoosa, Ga., 40 miles west of Atlanta, to produce automatic transmissions as part of a broader strategy for North American powertrain manufacturing. The plan includes investments to add production of high-precision gears at a Honda transmission plant in Ohio, and key engine components at a Honda engine facility in Alabama. In all, Honda will invest $270 million and create 600 jobs across the three states.

"This powertrain strategy represents the continuation of Honda's 25-year commitment to localize our operations close to the customer here in the United States and creates a new level of autonomy for Honda's powertrain production in America," says Koichi Kondo, president of American Honda Motor Co. Inc. "Importantly, the growing experience of Honda associates in America is what enables us to take this next step in powertrain production."

The Georgia plant, Honda's 13th plant in North America, will be 250,000 square feet and go into production in late 2006. At full capacity, the plant will employ 400 and produce 300,000 transmissions per year. The plant will start out building transmissions for Honda Odyssey minivans and Pilot sport utility vehicles.

Honda currently builds 1 million automatic transmissions in the United States each year and has the capacity to produce 1.4 million cars and light trucks in North America at five auto plants in the United States, Canada and Mexico.

In all Honda has 30,000 North American employees. Approximately 80 percent of the company's cars and light trucks sold in North America are produced there as well.