Honda has just celebrated the completion of a new engine plant to supply cylinder blocks and casting parts for its diesel engines in European models. The manufacturing facility located in Ogawa Japan, will start production in later this year, following the installation and testing of machines and equipment.

Ogawa is the latest environmentally-responsible Honda manufacturing facility. It has been designed to decrease the amount of CO2 generated in the production of each engine by 40 per cent during the casting process and by 25 per cent in the machining phase. The plant has only one production line, but this ‘Advanced Flexible Line’ can produce eight different types of engine, including the most sophisticated low-emission units.

Honda currently produces diesel engine cylinder blocks at its Suzuka factory in Japan and will gradually transfer the casting and machining process of engine parts to the new Ogawa plant. The new Ogawa plant will then supply diesel engine parts to the Sayama factory, to go into the Accord for the European market. It will also supply diesel engine parts for Honda’s factory in the UK at Swindon, which produces the Civic and CR-V models.

The completion ceremony at the new Ogawa engine plant took place on 10 April, 2009 and was attended by Shigeru Nakajima, Deputy GM of Industry and Employment at Saitama Prefecture Government, as well as Kihei Kasahara, the Mayor of Ogawa town and several Honda executives.

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With the continued economic downturn, Honda announced that it will cut production in North America by 62,000 units. This decision will lead to shuting down factories for 13 days in May. Production isn’t the only part of the cuts, Honda also said that it will cut pay for salaried and factory workers and will offer buyouts and early retirement incentives for 32,400 workers in the U.S. and Canada.

The Japanese automaker said that it will not be paying hourly workers for 6 of the 13 days which will be between May 1 and July 31. Previously Honda and Toyota continued to pay nonunion workers even when it shut down factories. Spokesman Ed Miller said that salaried workers will see their compensation reduced in the new fiscal year.

No details were given about the buyout program, a method Detroit automakers have used to cut payrolls sharply since 2005 by offering up-front payments of up to $100,000 per employee.

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Honda, the world’s leading engine producer and trendsetter in low emission vehicles, is going even further to reduce the environmental impact of its factories and office headquarters through its “Green Factories” and “Green Buildings” program in North America. The initiative plans to increase energy efficiency, reduce waste and enhance recycling activities at all North American plants, buildings and factories.

The majority of its North American manufacturing plants comply with third-party ISO 14001 certifications (International Standard for Environmental Management Systems) for reducing waste landfill by approximately 17 per cent last year alone.

Through its “Green Purchasing” program, Honda encourages and supports activities by more than 600 North American parts suppliers to adopt green factory programs, including reducing packaging waste and adopting more energy-efficient processes.

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Honda Motor Co., Ltd. has announced the sale of the Honda Racing F1 Team (HRF1) to Ross Brawn, the former Team Principal of Honda Racing F1 Team.

The entire shares of the HRF1, held by Honda GP Holdings Ltd., the UK-based holding company for HRF1 that managed all operations of Honda’s Formula One racing, were sold to Ross Brawn. As a result of this sale, the team ownership has transferred to Mr. Brawn, who plans to have the new team compete for this year’s FIA Formula One World Championship. …click here to read more

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Honda Motor Co., suffering from a 38 percent plunge in U.S. auto sales in February, may ask to borrow money from Japan’s government to lend to U.S. car buyers.

The amount of the loans and timing of the request to the state-owned Japan Bank for International Cooperation haven’t yet been determined, spokeswoman Akemi Ando said Wednesday. Mazda Motor Corp. also is considering a request for government loans, spokesman Toyota Tanaka said. …click here to read more

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Those looking for a new car are avoiding driving up to a car dealership and February auto sales, which were down to their lowest level in 40 years, is a perfect example. No surprise that the Detroit Big Three were down last month. General Motors reported the largest drop at 52.9 percent followed by Ford Motor Company at 48.4 percent. Chrysler rounded out the list with a drop of 44 percent.

American automakers are not the only ones struggling at the moment, Japanese companies also reported a significant drop in February 2009 sales with Toyota reporting a 39.8 percent followed by Honda at 38 percent. Nissan Motors reported an overall decrease of 37 percent.

Amazingly Subaru and Kia reported a gain of 1.4 percent and 0.4 percent respectively, while Hyundai reported a drop of 1.5 percent. Things have got to turn around soon.

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Michael Schumacher has been invited to look into buying the embattled Brackley based formula one team, says his long-time manager Willi Weber. It was reported earlier this year that Schumacher might be interested in looking into the Honda team, perhaps in collaboration with his former Ferrari colleague Ross Brawn.

“There was an enquiry,” Weber confirmed to a local newspaper, “but neither I nor Michael are going to take part in formula one in this way. “Michael is happy with his life and – as far as motor racing is concerned – I am focused on managing the career of Nico Hulkenberg,” Weber added.

It also emerged this week that Tony Teixeira, the boss of the A1 GP series, also has looked into buying the team following the Honda Motor Co.’s announcement that it is withdrawing from the sport. Mr. Teixeira released the following statement. “Because of the economic times, I cannot commit myself to this year’s budget.”

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