Honda is expected to announce the location of its new US plant today. A news conference has been scheduled for this morning (10.30 am EST) in Greensburg, Indiana, a small town 50 miles south east of Indianapolis, raising speculation that the chosen site is in the town.

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Honda announced in May that it would build a sixth North American plant in May this year. It said it planned a plant with a capacity of 200,000 units to become operational in 2008. Honda would invest US$400m and employ around 1,500 people.


The announcement sparked severe competition between states seeking to lure the investment. Other states competing for the site include Michigan, Illinois and Wisconsin.


Honda currently has two plants in Ohio – in Marysville, and in East Liberty, one plant in Alabama, and one in each of Canada and Mexico.


The new plant will increase Honda’s North American production capacity from 1.4 million to 1.6 million vehicles a year.

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According to the Associated Press, Honda collected options on land near Greensburg, earlier this year, offering to buy property at 75% more than its assessed value. The deal included a $6,000 signing bonus to landowners who agreed to sell, regardless of whether the land was used.


Reuters notes that Honda’s US sales have grown almost nine percent so far this year and that Honda has the highest average fuel economy across its fleet of vehicles of any auto maker in the U.S. market, which is expected to help the company gain share as consumers become increasingly concerned over high gas prices.