Honda Manufacturing of Indiana (HMIN) is planning to invest $40m to increase its capacity by 50,000 units per year to a total of 250,000 units.
The investment will also lead to the addition of Civic Hybrid production in early 2013, employing nearly 300 workers later this year.
Hionda's current move follows the beginning of a second shift of production last fall at HMIN which manufactures the Civic Sedan and the Civic Natural Gas along with the Acura ILX.
HMIN senior vice president Bob Nelson said increasing production in Indiana will provide the company with increased flexibility to adjust model mix at other plants in North America.
"All of our plants build multiple models on the same lines, so our ability to adjust between models and among plants allows us to optimize use of our production capacity," Nelson said.
According to the carmaker, the facility in Greensburg was first Honda plant in North America to produce a hybrid vehicle when it started production of the Acura ILX Hybrid in April.
Since late last year, the carmaker's seven automobile production facilities in North America have been operating up to their capacity, which currently accounts for 1.63 million units produced per year.
HMIN's additional capacity will also increase the company's purchasing from among 200 suppliers that produce parts and components for the plant's production.
