Honda Allots $40m on Factory for Jet Unit (update2)

Raising investment in its U.S.-based airplane unit tolargest business-jet maker. Honda has said it has
$100 million as the company expands into aviationmore than 100 orders for its $3.65 million HondaJet,
from autos, car parts like Honda floor mat,which can accommodate as many as eight people.
motorcycles and engines, Honda Motor Co. will spendThe company has said that its aircraft, which is
nearly $40 million for its first jet-aircraft factory.powered by two Honda- designed engines mounted
In a statement, the company said that the plantover the wings, will be more fuel- efficient and offer
construction began in June 27 on the Honda Aircraftmore standard features than competing small jets.
Co. facilities in Greensboro, North Carolina. The firstThe Japanese company is preparing three of the
phase of the project will be finished next year andplanes for test flights before 2008 ends for U.S.
HondaJet deliveries will start in 2010. Consequently,Federal Aviation Administration certification.
the Tokyo-based company said that eventualIn February, the company said that it would spend
workforce will total to about 350 people.almost $60 million on the aircraft facilities, with
Spokeswoman Alicia Jones said in a June 27 interviewadditional investment for the manufacturing portion
that the factory portion should open by 2009 inwhich will be announced later.
order to allow them to meet their target of deliveringWith the company’s U.S. operations based in
HondaJets by 2010. At the site, Honda is also buildingTorrance, California, its American depositary receipts
the unit's headquarters.climbed 39 cents to $35.6 at 4:02 p.m. in New York
The largest engine producer in the world and Japan'sStock Exchange composite trading. This year, they
second-largest carmaker will compete in aircrafthave fallen 9.8 percent.
manufacturing with Textron Inc.'s Cessna, the world's