LINCOLN, Alabama -- Honda plans to invest $97 million and create 20 jobs at its Alabama auto factory in Lincoln, as the company prepares to add the Acura MDX luxury sport utility vehicle to its assembly lines.
The Talladega County Commission on Monday night approved tax abatements for the project, which will involve new equipment at the plant.
Construction, installation and testing are expected to be completed in late 2012. Last week, Honda told employees that production of the MDX would be shifted to Lincoln from a plant in Canada in 2013. The move will give the Japanese automaker more room in Canada to build the popular CR-V SUV.
The $1.5 billion, 4,000-worker Alabama factory now produces the Odyssey minivan, Pilot SUV and Ridgeline pickup, as well as the engines that power them.
Acura is Honda's luxury vehicle division, and the MDX will be the first Acura product built in the state.
Mark Morrison, a spokesman for the Lincoln plant, said the new investment will increase production capacity and improve manufacturing flexibility, as well as support the MDX move.
The project also will offer improved efficiency in costs, quality and delivery for the Alabama operations, he said. The project follows another one announced and also approved for tax abatements in March. Honda did not pinpoint the reason behind that project -- in which the automaker is investing $94 million and adding 20 jobs in Lincoln -- but said it also involves new equipment.
Sales of the Odyssey and Pilot have been stronger this year, amid an overall recovery in the global auto industry. However, Honda has experienced some short-term production pains, as the March 11 earthquake in Japan caused a parts shortage. As a result, the Lincoln plant, along with other Honda facilities in North America, have drastically slashed output, which isn't expected to return to normal levels until the end of the year.
But the long-term outlook in Lincoln is brighter, thanks in part to the arrival of the MDX. After this project and the one announced in March are complete, the plant's total capital investment will grow to more than $1.7 billion.
Gov. Robert Bentley said Honda plays a key role in Alabama's economy, and he is pleased with the company's plans to bring new jobs and investment to the state.
The Talladega County Commission on Monday night approved tax abatements for the project, which will involve new equipment at the plant.
Construction, installation and testing are expected to be completed in late 2012. Last week, Honda told employees that production of the MDX would be shifted to Lincoln from a plant in Canada in 2013. The move will give the Japanese automaker more room in Canada to build the popular CR-V SUV.
The $1.5 billion, 4,000-worker Alabama factory now produces the Odyssey minivan, Pilot SUV and Ridgeline pickup, as well as the engines that power them.
Acura is Honda's luxury vehicle division, and the MDX will be the first Acura product built in the state.
Mark Morrison, a spokesman for the Lincoln plant, said the new investment will increase production capacity and improve manufacturing flexibility, as well as support the MDX move.
The project also will offer improved efficiency in costs, quality and delivery for the Alabama operations, he said. The project follows another one announced and also approved for tax abatements in March. Honda did not pinpoint the reason behind that project -- in which the automaker is investing $94 million and adding 20 jobs in Lincoln -- but said it also involves new equipment.
Sales of the Odyssey and Pilot have been stronger this year, amid an overall recovery in the global auto industry. However, Honda has experienced some short-term production pains, as the March 11 earthquake in Japan caused a parts shortage. As a result, the Lincoln plant, along with other Honda facilities in North America, have drastically slashed output, which isn't expected to return to normal levels until the end of the year.
But the long-term outlook in Lincoln is brighter, thanks in part to the arrival of the MDX. After this project and the one announced in March are complete, the plant's total capital investment will grow to more than $1.7 billion.
Gov. Robert Bentley said Honda plays a key role in Alabama's economy, and he is pleased with the company's plans to bring new jobs and investment to the state.