Honda Accord Storms in with New Jobs
Rekha is a member of The Motley Fool Blog Network -- entries represent the personal opinion of the blogger and are not formally edited.
Toyota (NYSE: TM) and Honda (NYSE: HMC) the leading companies in the auto market had been adversely affected by the 2011 earthquake and tsunami in Japan. But it did not take it long to be back in the race as the Toyota Camry is at present the best selling car in the market followed by the Honda Accord next on the list.
At a time when a compay like Google brings in the bad news of 4,000 job cuts, Honda brings in good news as the company decided to launch the 2013 revamped version of the Accord. Production of this super successful automobile brings hope for more investment and economic benefits. Honda’s new Accord sedan is to be unveiled on Monday leading to an investment of more than $220 million and many jobs. The car is expected to hit the production line by September.
Honda Brings Hopes
High investments have raised the hopes for many jobs. Executive director of Union County Economics Development Partnership, Eric Phillips, commented, “Every time Honda has invested in Ohio over it’s 30 years, it’s meant more jobs.”
The new Honda Accord is great news for all 13,500 employees of Honda in Ohio along with various thousands employed by the suppliers to the company. The production of Honda’s new version of the Acura NSX sport car is also expected to be somewhere close to its Ohio plant.
Not only is the company providing direct employment it is working towards the benefits of indirect employment in the auto sector. 150 more jobs were added in Honda’s plant in Russels Point and Anna with the production of new engines and transmissions. Eventually, for the first time, high-tech pulley components will also be manufactured. These high-tech developments aim at improved fuel efficiency and driving performance.
The increased flow of auto parts from Japan, after the 2011 tsunami and earthquake, and big investments has boosted the economy of the county. Now, not only will there be job increases, improved business is also expected for the Honda suppliers.
The company expects roaring success for the new Accord. So confident is the company that it is planning expansions. The president of Autotool Inc. in Plain Citysaid, “We are planning to build a new larger facility.”
Honda and competition
Competition in the mid sized sedan market is getting fierce with the top automakers including Toyota, Ford, General Motors and Honda coming out with new models. Accord has been losing to Toyota Camry which is gobbling up the market share. The company is therefore preparing to get a bigger bite of the pie by redesigning the Accord. The revamped version is supposed to be spacious as well as fuel efficient than before. The car’s infotainment system will also make social networking available to its buyers. With attractive interiors and athletic looks, the car is getting set to create a ripple.
After the profits that the tsunami washed away, the company is looking forward to this project. The icing on the cake would be the jobs coming with the project . Let us keep our fingers crossed for Honda’s success, not only for the profits the company expects, but also for the jobs that it will generate.
rekhamarwah has no positions in the stocks mentioned above. The Motley Fool has no positions in the stocks mentioned above. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.If you have questions about this post or the Fool’s blog network, click here for information.