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ReprintsHonda looking to build new Japan plant
Reuters
March 11, 2006 - 11:00 am ET
TOKYO -- Honda Motor Co. is looking to build a new domestic plant -- its first in 30 years -- mainly to manufacture advanced powertrains as it aims to raise the fuel economy of its cars, a spokesman said on Saturday. He said no other details, including the investment amount or whether the factory would make only engines or cars as well, have been decided. Clean diesel engines, hybrid systems and the new VTEC engine, which features fuel efficiency and power, are all under consideration, he added. The Nihon Keizai business daily reported on Saturday that Honda would start manufacturing advanced fuel-efficient engines as early as 2008, spending an estimated 30 billion yen ($250 million) on initial investment, including to purchase land, most likely in Saitama, near Tokyo. Japan's third-biggest automaker plans to initially set up production lines for its new VTEC engine and for V-10 engines to be mounted on its planned new sports cars, the paper said. At full capacity, the plant is expected to crank out around 200,000 engines a year, it added. Honda is also considering production lines at the plant for gasoline-electric hybrid systems and for assembling cars. The plant would take over some car production from other factories, leaving Honda's overall production capacity in Japan at 1.2 million units a year, the paper said. |
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