Honda has just announced it’s future plans for north America, including a new US auto plant and a new Canadian engine plant that will be in operation by 2008. Also detailed in the press release are plans to improve fuel efficiency including a new hybrid car and clean diesel technology.

The plan includes:

• Construction of a new auto plant in the U.S. with an investment of approximately
  $400 million to begin production in 2008, with employment of more than 1,500 associates at full capacity.
• Construction of a new engine plant in Canada to begin production of four-cylinder engines in 2008 with an investment of $140 million and employment of 340 associates.
• Expansion of U.S. engine, transmission and powertrain component production in Ohio and Georgia, with additional investment of $125 million and additional employment of 80 associates.
• Introduction in the U.S. and Canada in 2009 of a new, more affordable, dedicated hybrid car.
• Introduction in the U.S. and Canada within the next three years of new diesel engine technology that meets U.S. EPA Tier 2 Bin 5 emissions standards.
• Establishment of a goal to increase American Honda’s Corporate Average Fuel Economy (CAFE) by five percent over 2005 levels by the year 2010.

This ties in with Honda’s plans to build more environmentally friendly vehicles world wide, by increasing fuel efficiency on exisiting models. Perhaps the best news here is the creation of new jobs at a time when many North American manufacturers are cutting back. Way to go Honda!