Honda to build new plant in China

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TOKYO, Dec. 19 Kyodo -
Honda Motor Co. plans to build a new passenger car plant in China to increase
production in the rapidly growing market, sources familiar with the matter said
Saturday.
The plant in Wuhan, Hubei Province, is scheduled to start operations in 2011 at
the earliest with an annual output capacity of more than 100,000 cars, becoming
the Japanese automaker's fifth four-wheeled vehicle plant in China, the sources
said.
With the start of operations at the plant, Honda's overall production capacity
in China will top 700,000 units, up 20 percent from the current level, they
said.
Japanese automakers are expanding production in China, which is certain to
become the world's largest auto market this year in terms of sales volume,
topping the United States.
A plan now surfacing is to build a plant on a site next to Honda's
joint-venture plant in Wuhan, the sources said, adding the new plant is
expected to make vehicles, including Honda's mainstay Civic small passenger
car, which will likely be remodeled as early as 2011.
The joint-venture plant, with an annual output capacity of 200,000 units, has
been almost in full production since this autumn with the growth of the Chinese
market.
==Kyodo