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Honda plant dedicated during ‘challenging’ times

Honda Motor Co. dedicated its first Indiana car assembly plant recently against the backdrop of a slumping economy and a possible multibillion-dollar bailout for the three largest U.S. automakers.

Honda Manufacturing of Indiana started churning out fuel-efficient Civic sedans last month at its new $550 million factory, which sits halfway between Indianapolis and Cincinnati. But assembly lines paused for the dedication ceremony, leaving a line of blue Civic frames suspended from conveyor belts in the factory.

Hundreds of guests and employees clad in white lab coats gathered around a temporary stage. Honda President and Chief Executive Takeo Fukui told them the company opened this factory “at a very challenging time.”

U.S. auto sales fell to their lowest level in more than 17 years in October. Honda, which has 16 manufacturing sites in North America, reported a 41 percent drop in quarterly profit last month and was forced to lower its forecasts for the full year.

“We face a difficult economy … but at Honda, we have always understood that challenging times represent opportunity,” Fukui said, noting later in a brief talk that the demand for efficient products such as the Civic remains strong.

Honda eventually plans to make 200,000 gasoline-powered Civics a year by operating two shifts at the factory, which covers 42 acres. The company also said it would shift production of a compressed natural-gas version of the Civic to Greensburg by mid-2009 from a plant in East Liberty, Ohio.

Ford’s pricing deal part of year-end clearance sale

Ford Motor Co. is offering car buyers employee pricing, plus cash rebates, on most 2008 and 2009 models as part of a year-end clearance sale. The offer, which runs through Jan. 5, will exclude 2009 F-series pickups.

The offer comes as tight credit and economic uncertainty have dragged U.S. auto sales to their lowest rate in 25 years. Ford’s sales in October fell 30 percent from a year earlier.

General Motors Corp. offered employee pricing on many of its models in August and September in an effort to boost sales, while Nissan Motor Co. and Toyota Motor Co. more recently began offering zero percent financing on some of their models.