Hiroshi Kobayashi, president and CEO of Honda Canada

Twenty years ago, it became the first Japanese carmaker to build a manufacturing facility in the country, with an initial target output of 40,000 units a year.

Along the way, Honda Canada has expanded from just a few employees to more than 5,100 sales associates today, with annual sales in excess of $14 billion.

With two assembly lines for cars and trucks, the plant produces about 390,000 vehicles a year. To date, more than 4 million vehicles have been produced by this Canadian manufacturer.

Honda’s investment, valued at more than $2 billion, is a strong testament to the company’s confidence in the Canadian economy. Honda will open a third plant in Ontario in 2008 for the production of approximately 200,000 four-cylinder engines. This facility, which increases Honda’s commitment to Canada by an additional $154 million and 340 new jobs, will further cut product lead times and help in Honda’s goal of having a complete Canadian manufacturing operation.

Over the years, Honda has grown increasingly popular among Canadians who have found its premium vehicles luxurious, reliable, fuel-efficient and of high value. In 2006, the Civic was Canada’s best-selling car for the ninth consecutive year.

‘‘There’s a certain level of affection here toward the Civic and our customers have stayed loyal over the years,’’ says President and CEO Hiroshi Kobayashi. To date, Honda Canada has sold more than 1.3 million and produced 2.7 million Civics in Canada, cementing Canada as a truly ‘‘Civic Nation.’’

Having earned that loyalty, Honda continually strives to raise quality standards to the same level as the expectations of a discriminating market.

‘‘Despite our size, we do not want to act like a large organization. We stress the one-on-one relationship and build our business customer by customer,’’ stresses the Honda Canada chief.

With such a large presence in the country (Honda employs 21,000 Canadians in manufacturing, sales and dealerships), the company is committed to fostering good relationships with local communities.

‘‘In addition to promoting literacy,’’ says Jim Miller, executive vice president of Honda Canada Inc., ‘‘we’re also very active with the Earth Rangers, an organization that speaks to children about wildlife and environmental issues.’’

Each year more than 350,000 Canadians benefit from programs sponsored by Honda Canada, including ABC CANADA Family Literacy Day. In addition, charitable programs such as the Let’s Talk Science Partnership Program are funded through the Honda Canada Foundation.

‘‘We appreciate that Honda is well received here. We work hard to maintain a high standard and to always deliver the same quality. Once a customer buys a Honda, we stay committed to them. That’s very important for how we conduct our business in order to build and maintain customer satisfaction,’’ he says.

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