Greensburg, Indiana - Honda has announced its plans to open a new auto assembly plant in Decatur County, a few miles northwest of Greensburg, Indiana.  The plant will begin operations in the fall of 2008.  It will produce 200,000 vehicles and employ 2,000 Honda associates when it reaches that capacity.

"I am pleased to announce that we will establish in Indiana a new automobile manufacturing plant to begin production in the fall 2008," said Koichi Kondo, American Honda President.

The plant is a $550 million investment by Honda. $85 million in state incentives lured Honda, incentives by the state and local government.  Honda officials say location was the most important factor in the decision. Mr. Kondo called Decatur County an ideal location in the Midwest for suppliers and customers. He ended the announcement by saying "Honda and Indiana, start your engines."

Following a luncheon that featured a video presentation by Honda, local leaders made no effort to contain their enthusiasm.

"Its like a miracle. It' just something that doesn't happen every day," says Ray Geis, Decatur County GOP Chairman.

"It certainly is something none of us were expecting and just dreaming for," says Roger DuMond,  Greensburg Chamber of Commerce.

The governor was at the announcement and spoke of an economic comeback in Indiana.

"Years from now when the history of that great comeback is written, people will say there was no bigger step than the one we take today. Mr. Kondo welcome to the state of Indiana," said Governor Mitch Daniels.

Honda wouldn't say what vehicle will be produced at the plant, but did say it will be a four cylinder engine for customers interested in fuel efficiency. 

This is the sixth Honda plant in North America. Honda has two plants in Ohio and one each in Alabama, Canada and Mexico. This factory will boost Honda's North American production capacity from 1.4 million to 1.6 million vehicles a year.

The Associated Press contributed to this report.