Honda Parts Purchasing Surpasses $300 Billion in North America

Honda News YOU Can Use!

Honda honored more than 100 automotive parts suppliers in North America for outstanding performance in 2013 at its 30th Supplier Conference last week, and announced that Honda has purchased more than $300 billion in parts and materials from its more than 650 suppliers in North America during the 35 years since Honda began building products in the region.

The purchasing milestone came on the heels of record Honda auto production and parts purchasing last year in a region where Honda manufacturing continues on a growth trajectory. In 2013, Honda manufactured a record 1.78 million automobiles in North America as parts purchasing in the region exceeded $25.5 billion for the year, the most ever.

“Over the next three years, Honda will continue to transform our business, advancing technology in products and manufacturing in North America to maximize joy for the customer,” said Chitoshi Yokota, senior executive vice president of Honda North America, Inc. “Together, Honda and our suppliers can support Honda’s goal to become a truly global company by becoming a truly self-reliant regional company here in North America.”

Today, more than 650 domestic OEM suppliers ship parts to 14 major manufacturing facilities in North America, producing a wide range of Honda and Acura automobiles, automobile engines and transmissions, and Honda all-terrain vehicles. Utilizing a separate supply chain, Honda also manufactures power equipment products such as lawn mowers, mini-tillers and general purpose engines in North Carolina. Honda has invested $2.7 billion in recent years to expand auto production capacity and implement new technologies.

In addition to supporting increased production, suppliers are being called on to support Honda’s new responsibilities in the region to increase exports and lead the launch of global products, such as the Civic, that Honda manufactures in markets around the world.

“With significant growth in our production over the next three years, driven by heavy new model activity in North America, we will continue to collaborate with suppliers to deliver leading edge technologies and the highest quality products,” said Tom Lake, vice president of North American Purchasing and Cost Strategy.

Honda Honors 65 Top Suppliers in the U.S., Canada and Mexico

During its annual conference, Honda honored 65 top OEM suppliers for their excellence in one or more of three key categories – Quality, Delivery and Value – based on their outstanding performance in 2013.

This includes five suppliers that excelled in all three categories: American Leakless Company, LLC, Athens, Alabama;CTS Corporation, Elkhart, Ind.; KTH Shelburne Mfg., Shelburne, Ontario, Kumi Canada Corp., Bradford, Ontario, and TS Tech USA Corp, Reynoldsburg, Ohio.

Honda also honored four suppliers that in the past year that overcame extraordinary operational challenges to support Honda production: Asama Coldwater Mfg., Inc., Coldwater, Mich.; Bridgestone Americas Tire Operations, Wilson, N.C. and Wuxi, Jiangsu, China; ITW Shakeproof Automotive Products, Elgin, Ill., and NS International Ltd., Sabina, Ohio.

In addition, Honda presented its Corporate Citizenship Recognition to Rainsville Technology, Inc. of Rainsville, Ala., for demonstrating an exceptional commitment to social responsibility. This recognition is based on leadership in the areas of health and safety, diversity, community involvement, ethics and compliance, and the environment.

Purchasing Impact Where Honda Has Manufacturing Operations

Location No. OEM Suppliers 2013 OEM Parts Purchasing
Ohio 158 $9.7 billion
Alabama 39 $2.2 billion
Indiana 49 $2.5 billion
Georgia 40 $685 million
South Carolina 38 $534 million
North Carolina 45 $496 million

49 Honda Service Parts Suppliers Recognized for Outstanding Performance

In addition to the OEM supplier awards, Honda honored 49 suppliers for outstanding performance in supplying Service Parts that serve the needs of customers after they have purchased Honda and Acura vehicles. American Honda provides service and accessory parts for the nearly 20 million Honda and Acura automobiles in operation in the United States today.

Honda Service Parts suppliers provide customers with top-quality service parts in a timely manner and at competitive prices for the maintenance and repair of Honda and Acura customers’ vehicles. They were rated on their performance in quality, cost and delivery. Distinct from the OEM supplier awards, an overall score is based on the combined performance in all three categories.

The company manages a national network of warehousing and distribution facilities that deliver high-quality, high-value service parts to 1,300 Honda and Acura dealers nationwide, who consistently rank American Honda as managing the best parts operations in the automobile industry.

Honda purchased nearly $1.26 billion in parts from its Service Parts suppliers in North America last year.

Comments are closed.