It would invest JPY50bon (US$450m) in a plant with a capacity of around 150,000 vehicles a year, from 2009.
According to the report it is likely that the new plant would be located near an existing facility. Honda has two plants in Ohio, one in Alabama, one in Ontario, Canada and one in Mexico.
Honda currently has annual production capacity of 1.4m vehicles, according to Reuters, but sold 1.66m vehicles in North America in 2005.
The plant would probably build small cars such as the Civic and Fit [Jazz].
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