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Honda's Acura NSX masterstroke: building the factory in Ohio

When Honda announced it was going to build its NSX supercar in Ohio instead of Japan, it caught everybody in the industry by surprise. No one expected this proud Japanese company to build its most technologically advanced sports car anywhere but in its home country. Now Honda has a supercar production facility in rural Ohio that would be the envy of any Formula One team. The people at Honda call it the PMC, but its official name is the Performance Manufacturing Center. It's a building that started out as a shipping facility for suppliers, but Honda invested $70 million to transform it into a showcase facility that will build the NSX. Honda benchmarked the assembly operations at Ferrari, Lamborghini, McLaren, and Bentley before work began on its facility. The 200,000 square-foot building will also double as a customer reception center – Honda will open the doors for customers to come see their car being built. It's also going to offer them high-speed test drives at the gigantic Transportation Research Center just down the road. No one expected this proud Japanese company to build its most technologically advanced sports car anywhere but in its home country. Inside, the layout is wide open and well lit. There are no stripes or lines on the floor and none of the different departments are walled off. This creates a more welcoming appearance and lets you get a comprehensive view of the entire process at a glance. And with an eye towards future lessons learned, most of the equipment is of a modular design that can be easily reconfigured or moved. The body shop and paint shop are enclosed by glass walls so that anyone can see what's going on inside. And while you'll see some automation here and there, the idea was to achieve a blend between man and machine, not to try and automate everything. This is a low-volume facility with production targeted at only eight to ten cars a day. The plant runs four days a week with one ten-hour shift. Don't expect to see rows of new NSXs parked on any dealer's lot. The car will only be built to order. Honda is obsessed with ensuring the NSX is built to the most exacting quality standards. The plant people pored over the JD Power Appeal study to determine what supercar customers care about the most, then looked at which aspects of that directly tie into manufacturing. They developed their quality control strategy with three goals in mind. First, they wanted to build everything right the first time with no adjustments.

Japan could consolidate to three automakers by 2020

Sergio Marchionne might see his dream of big mergers in the auto industry become a reality, and an analyst thinks Japan is a likely place for consolidation to happen. Takaki Nakanishi from Jefferies Group LLC tells Bloomberg the country's car market could combine to just three or fewer major players by 2020, from seven today. "To have one or two carmakers in a country is not only natural, but also helpful to their competitiveness," Nakanishi told Bloomberg. "Japan has just too many and the resources have been too spread out. It's a natural trend to consolidate and reduce some of the wasted resources." Nakanishi's argument echoes Marchionne's reasons to push for a merger between FCA and General Motors. Automakers spend billions on research and development, but their competitors also invest money to create the same solutions. Consolidating could conceivably put that R&D money into new avenues. "In today's global marketplace, it is increasingly difficult for automakers to compete in lower volume segments like sports cars, hydrogen fuel cells, or electrified vehicles on their own," Ed Kim, vice president of Industry Analysis at AutoPacific, told Autoblog. Even without mergers, these are the areas where Japanese automakers already have partners for development. Kim cited examples like Toyota and Subaru's work on the BRZ and FR-S and its collaboration with BMW on a forthcoming sports car. Honda and GM have also reportedly deepened their cooperation on green car tech. After Toyota's recent buyout of previous partner Daihatsu, Nakanishi agrees with rumors that the automotive giant could next pursue Suzuki. He sees them like a courting couple. "For Suzuki, it's like they're just starting to exchange diaries and have yet to hold hands. When Toyota's starts to hold 5 percent of Suzuki's shares, this will be like finally touching fingertips," Nakanishi told Bloomberg. "I absolutely do believe that we are not finished seeing consolidation in Japan," Kim told Autoblog. Rising development costs to meet tougher emissions regulations make it hard for minor players in the market to remain competitive. "The smaller automakers like Suzuki, Mazda, and Mitsubishi are challenged to make it on their own in the global marketplace. Consolidation for them may be inevitable." Related Video:

Subcompact Crossover Comparo Roundtable | Autoblog Podcast #599

This week, we've got a special episode of the Autoblog Podcast, wherein you'll hear the extended version of the roundtable discussion from our Subcompact Crossover Comparison. In it, Editor-in-Chief Greg Migliore is joined by Consumer Editor Jeremy Korzeniewski, Senior Editor, Green, John Beltz Snyder and Associate Editor Joel Stocksdale. After extensive testing (and filming) in Northern Michigan, our editors break down what they liked and loathed about the Honda HR-V, Hyundai Kona, Jeep Renegade and Kia Soul. Grab a cup of coffee with us, and enjoy. Autoblog Podcast #599 Get The Podcast iTunes – Subscribe to the Autoblog Podcast in iTunes RSS – Add the Autoblog Podcast feed to your RSS aggregator MP3 – Download the MP3 directly Feedback Email – Podcast@Autoblog.com Review the show on iTunes Related Video: