TOKYO - Honda Motor Co. will build a new, more flexible engine factory near its Sayama, Japan, car plant to replace the current Wako engine plant.
The new Sayama plant will have two production lines, compared with Wako's four, but capacity will be unchanged at 500,000 engines a year, spokesman Yuzuru Matsuno said.
Honda is taking the same 'scrap and replace' approach to capacity in its car assembly plants, where it expects to renovate its current Japan factories so that four assembly lines will be able to produce the same volume as its five current lines.
Construction of the first new engine line is to be completed between April and September 2000. The second new line is to be finished between September 2002 and March 2003. Wako's lines will be phased out as the new lines gear up.