Honda subsidiary Yachiyo Industry on Tuesday confirmed earlier newspaper reports it would build a new minivehicle plant at Yokkaichi in Mie prefecture, southwest of Nagoya, in central Japan, with engine production set to start in 2009, and car production a year later.
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Production capacity, when combined with an older nearby plant, will total 240,000 a year, and the new plant would make minivehicles such as the Life and Zest models, Honda said in a statement.
The automaker is investing JPY50bn ($US491m; EUR320m) in the new plant as part of an effort to strengthen its mini-vehicle business, it said.
Honda said it would consolidate minivehicle component production on the one site and divide production of four model lines by type between existing and new factories.
