Honda expanding at PTI : News-Record.com : Greensboro & the Triad's most trusted source for local news and analysis

GREENSBORO — Honda Aircraft’s top executive said Monday that production of the company’s HondaJet has been delayed yet again.

Nonetheless, President and CEO Michimasa Fujino expressed his desire to carry out an $80 million, 419-job expansion plan at Piedmont Triad International Airport, where the company has its headquarters.

The production delay will be the third for the $4.5 million light business jet since 2009. The most recent came last year.

“It is regrettable news,” Fujino said of the change in production. “But at the same time, I do not want to give up. I never give up.”

Fujino said his commitment to the HondaJet, which had been scheduled for production next year, and to Greensboro remains unwavering.

The delay, caused by engine problems, will push production back about a year. That means the first jets won’t roll off the assembly line until mid-2013.

“We are moving ahead with the program,” Fujino said. “It is just at a different schedule.”

Fujino said the investment and job expansion will still happen over the next five years.

“That is our plan,” Fujino said. “At this moment, details are not ready to disclose.”

But it’s clear that some of the investment and jobs will be coming later than expected.

“I am not sure I can do everything I planned on schedule,” Fujino said.

Initially, Fujino said, the company will build a $20 million, 80,000-square-foot maintenance and repair operation on land north of its current campus. The operation will employ more than 20 people.

The MRO building will require about 20 additional acres at PTI. Design of the building will be finished in the first quarter of 2012, with construction beginning in the second quarter of the year, Honda said.

The company should occupy the building in the first half of 2013, about the time jet production begins.

Fujino said announcements on a parts manufacturing operation and a parts and distribution warehouse have been pushed back. They would likely come in the next two to three years, he said.

Greensboro leaders had hoped Honda officials would announce all three expansion projects Monday.

“It’s not all the good news we wanted right away,” Guilford County Commissioner Kirk Perkins said, “but it’s good news.”

Honda announced its plans in simultaneous events — one at the T.H. Davis Aviation Center at PTI and the other at an aviation convention in Las Vegas.

Gov. Bev Perdue, U.S. Sen. Kay Hagan and nine other state and local leaders delivered the news at PTI. “Honda told us they were looking for the best site in the world,” Perdue said, “and they chose this site.”

Hagan said the expansion addresses the most pressing need in the state.

“Everywhere I go in North Carolina, the issue everyone talks to me about is jobs,” she said. “That’s why this announcement is so important for North Carolina and for Greensboro. ... Jobs are the number one, number two and number three priority.”

None of the speakers at PTI mentioned the production delay.

Dan Lynch, president of the Greensboro Economic Alliance, said Honda recently notified local leaders about the problem during a confidential meeting.

“They were very upfront about that,” Lynch said. “It was a problem with the engine. They discovered it during testing. They stopped and re-engineered the piece.”

He said the new piece is back on the engine and testing has resumed.

“That’s not uncommon,” Lynch said. “It is part of the (FAA) certification process.”

Other local leaders downplayed the significance of the delay.

“There is no question about their commitment to our area and to North Carolina,” Greensboro Mayor Bill Knight said. “They’re still talking about adding 419 jobs. And it’s my hope and the hope of the City Council, the hope of the people of Greensboro that this is going to be a building block for our area. This company’s commitment really shows aviation is taking off here.”

Guilford County commissioners Chairman Melvin “Skip” Alston said he considered the MRO expansion a major victory.

“We have to look at the big picture and not the small picture,” Alston said. “They may be having a delay, but they’re being honest with us and with the public about the delay. They got us together and told us about it weeks ago..”

Alston said incentives from the county and the city are based on number of jobs created — so whenever the jobs are created, the money will come through for the company.

Fujino admitted the delay had resulted in some frustration.

But he added, “I want to evaluate everything. I have to make a very thorough analysis to make the best decision for Honda Aircraft and Greensboro. If people would understand it, I would appreciate it.”

Contact Donald W. Patterson at 373-7027 or don.patterson@news-record.com

Contact Joe Killian at 373-7023 or joe.killian@news-record.com

Dman94

October 10, 2011 - 11:38 am EDT

Why not keep giving countless loads of money to these poor, poor company's! They are in such terrible financial turmoils that every citizen should be REQUIRED to pay them $100 per month for a year just so these company's can come to our area so these people can have a job!

When will political learders learn that throwing away the PEOPLE'S money like this is a waste?! The soul of the people is being sold to the highest bidder!

Does anyone remember the HUGE DELL payout? So what if only some of it was repaid after Dell packed up and moved overseas! There was still a HUGE payout with a promise of of "x" number of jobs over a certain time period! If ANY incentives are promised, it should be under the stipulation that those incentives will ONLY be given AFTER all of the PROMISED jobs are created at a set salary, NOT to be lowered, EVER with expected raises annually!

Boatman

October 10, 2011 - 6:19 pm EDT

Stop and think about what you are complaining about. They are going to invest 120 million+ in this area. Any money that the city/ctate contribute will come back 10 fold in money spent here. Jobs, jobs, jobs. How may companies are hiring hundreds of people in this area. You don't need a job do you. Tell your story to the folks who do.

And by the way, I believe Dell paid back all their incentive funds, plus interest.

GO HONDA!!!!!!!!!!!!!

October 10, 2011 - 10:32 pm EDT

boat, the larger part of the posting is too ridiculous to even respond. However, 400 jobs over 5 years is less than 100 jobs per year. And now with the larger part of the project pushed back by at least a year causes me doubts that this jet fiasco will ever come to realization.

As for Dell paying back ALL of their incentives plus interest, I believe you boat are greatly misinformed! Check the records on that one and then come back and post again about how good corporate welfare really is for ALL of the people!

RandolphBloke

October 11, 2011 - 12:28 am EDT

In an admitted cursory glance at things related to Dell, I saw where they were following their contract to the letter, including paying the penalties for not meeting their end of the deal. Where are you getting your information that they never paid according to the contract? I'd like to see it for myself as I've been unable to do so rapidly and you seem to have the info easily at hand.

October 11, 2011 - 6:05 am EDT

Just look at what they have done already. That parking lot is full. They are adding jobs all the time. They are only going to continue to grow.

After what they have done so far, do you think Honda will give up on that project. No.

We can feed people, or teach them how to feed themself. These are jobs that bring more jobs.

buzzman

October 11, 2011 - 7:37 am EDT

Dman94 - When it come to business, the Japanese do not give up and this is no "jet fiasco." Anyone with common sense knows that anytime a new engine (or anything) is developed, problems arise that must be addressed. Look at Boeing's recent delays.

DoesItMatter

October 10, 2011 - 6:33 pm EDT

Honda is great for GSO. On another note as stated in a previous article, 85k a year avg is quite misleading. When we're talking pay before taxes its more like 50k for the average worker (10 years experience), much less for the folks straight out of GTCC. Still a boost to the local area.

Tigger

October 10, 2011 - 7:20 pm EDT

OK, yes, Honda Jet can be good for the economy of the Triad, HOWEVER my feeling on the incentives is this. If the city council is going to give incentive money on the local level and ultimately there are going to be incentives given somehow on the state level then written somewhere into the agreement(s) there needs to be the
stipulation(s) that any and all construction, supplies, employment, etc will be kept on the local level and at the very least, on the state level and WILL NOT go outside the state lines. Now, understandably, Honda Jet is going to have some pretty sophisticated needs, I will conceed to that. Fine. Then they will write a proposal stating how much they will have to employ, bring in and why from outside the state of North Carolina. It should not exceed 20% of the total that they will need - again this will include everything from pre-construction, construction, supplies needed for construction, filling the building from furniture and computers (why couldn't Dell have survived?) to the humans that will fill the desks, answer the phones, build the componets for the jet, etc.

I am sick and tired of companies that get money to build and then they don't stay local when it comes to the pre-construction, the construction, ect....Keep it local/on the state level. It will help everyone out in the end.

October 10, 2011 - 10:36 pm EDT

Tigger, I agree with the proposal about utilizing in-state supplies/suppliers, etc. That still does not convince me that taxpayer dollars should be used as corporate welfare. Use those monies to help the long-term unemployed instead of helping the corporations that have money coming in hand over fist!

With what is stated in the article as of 10:30 PM on 10/10/2011, I have serious doubts that anything will ever fully come to reality at PTIA with Honda Jet. If wrong, I will admit it. However, there is at least five years before that could be done. So, as the old saying goes; "time will tell!"

Traveler

October 10, 2011 - 11:57 pm EDT

OK You have done a lot of criticizing. How about suggesting a solution.

What kinds of jobs do you propose bringing to the Triad, and how do you propose bringing them here?

Tall_Guy

October 11, 2011 - 12:01 am EDT

Here's hoping that once production gets rolling, various suppliers will relocate to this area as well. Honda is a world class company and I'm glad to have them here.

1234

October 11, 2011 - 5:39 am EDT

Well folks, hate to throw a wet blanket on this GREAT Company...but if P-bo's new taxes go thru it will hurt the sales of this companies new innovative product(s)! The loss of being able to write off corporate jets could effect sales...but the stupid thing is you can send 10 employees on a Delta flight and write it off, but put them on a corporate plane for less money per person, get them to a meeting on your schedule and leave when you need to and the liberals want to penalize them by taking away tax credits for investing! 2012 remember.

Panacea

October 11, 2011 - 10:39 am EDT

The ultra rich want their jets. They're not going to stop buying them just because the tax code changes.

wctbl?

October 11, 2011 - 1:13 pm EDT

...and corporations aren't going to stop using a more efficient and cost effective manner of transportation. They'll find a way to make it work. We call it American Ingenuity.

October 11, 2011 - 6:21 pm EDT

This is a great example of someone who knows what they are talking about.

October 11, 2011 - 10:09 pm EDT

Lets see, the next to worst President ever did this to boats...yes, Jimmy Carter killed the luxury boat industry...as those that wanted the boat had the money to buy off shore, staff off shore and pay their property taxes at foreign ports:

www.spectator.org/archives/2011/06/30/obamas-obsession-with-corporat

Companies do what is best for their bottom lines, so move the goal post and yes they will do other things! Thanks Honda for being a creative bold company!

wcarter2

October 11, 2011 - 6:52 am EDT

I find it kinda ironic that our lovely Gov. and her cohort Kay (tax em) Hagan are laid up in the front row while our fearless leader keep railing on tax to death all the folks who create jobs in the country. What a hoot !!! Somewhat hypocritical I would say !

October 11, 2011 - 9:08 am EDT

wcarter2, where are all the jobs that this mega-wealthy group has supposed to have created? What have they not been created? All I hear is you can't tax this elitest group that creates jobs. Yet, for the past 5-6 years they have had a nice tax break and jobs have been disappearing like people running from a theatre when someone yells' "fire!"

Now, when it is proposed to tax this wealth, the cry is you can't tax the ones who create the jobs! Where are these jobs? There is no increase in their tax and just last year dumbama EXTENDED the dumb Bush tax cuts! So, where are the jobs?

Someone please provide that answer? All the evidence is there to substantiate lower tax rates on this elitest group of wealthy people, yet there are still no jobs and unemployment has remained steady around 9-10%. So, what do you say now?

Throwing money down a rat hole only wants more rats standing at the trough wanting money! It is time to funnel the money where it needs to be, in the hands of the PEOPLE!

citywatcher

October 11, 2011 - 10:17 am EDT

According to the Triad Business Journal, 2 or 3 more facilities beyond this expansion may be built here. It would include another parts manufacturing plant, warehouse and distribution center. These are real jobs and they are high paying.

gsomvp

October 11, 2011 - 10:26 am EDT

You folks are all missing the point in dman's rants..."mega wealthy" and "elitist group of wealthy people" are sure signs to me that dman has fallen hook, line and sinker for the class warfare argument that super liberals always make. He also says we should give the incentive money to the longterm unemployed as well. Curious? Nah, pretty standard stuff really.

October 11, 2011 - 10:10 pm EDT

I have NEVER been hired by a poor man!

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