Honda Invests Millions for New Car Model Production

Category: Business

Listening

Unlocking Word Meanings

Read the following words/expressions found in today’s article.

  1. earmark / ˈɪərˌmɑrk / (v) – to set aside money for a specific purpose
    Example:

    The money from the fundraiser is earmarked for the new project’s funding.


  2. plant / plænt / (n) – a building where products are manufactured
    Example:

    They investigated the plant to see why the production failed.


  3. accommodate / əˈkɒm əˌdeɪt / (v) – to provide space or room for something
    Example:

    The company plans to expand its office to accommodate hundreds of new employees.


  4. sum / sʌm / (n) – an unspecified amount of money
    Example:

    They paid a large sum to settle their debt.


  5. employ / ɛmˈplɔɪ / (v) – to use or apply something
    Example:

    The company’s human resources department is looking for new policies to employ.


Article

Read the text below.

Honda is investing $267 million and opening 300 jobs for the production of its new car model, Accord 2018.


The latest Honda model is a sedan-type car that will feature a more powerful engine and better fuel economy. In addition, Accord 2018 will also have an improved safety technology that would include collision-avoiding features.


Around $220 million was earmarked for the development of Accord 2018’s new plant in Marysville, Ohio. The plant would reportedly have a $165-million welding department that will use 342 welding robots. Aside from the Marysville plant, Honda is also investing in an engine plant for Accord 2018 in Anna, Ohio.


Honda is optimistic about Accord 2018’s sales, as rival companies have focused less on making sedans and more on producing other car types, such as SUVs, crossovers, and pickup trucks. The company’s vice president for sales expects that Honda’s sales will not fall in 2018 because of the new and improved features of Accord 2018.


The manufacturing leader for the new Accord model also said that the plant in Marysville can create 440,000 units annually. He added that it can be expanded to accommodate more in the future if sales become successful.


In addition to investing in new facilities, Honda has also increased its investments in research and development. This year, the car company expects its research and development expenditures to reach around $6.6 billion. Because of this huge sum, Honda has topped Nikkei’s survey of Japanese companies with the highest research investments. The company is researching on advanced technologies that can be employed on new car models, such as self-driving cars and electric cars.


Viewpoint Discussion

Enjoy a discussion with your tutor.

Discussion A

• Do you think that Honda’s huge investment in the new plant would be worth it? Discuss.
• In addition to production, what else should car companies like Honda invest in?

Discussion B

• Why is it important to invest in research and development? Discuss.
• In what ways can companies reduce research and development costs?