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The Honolulu Advertiser
Posted on: Wednesday, May 17, 2006

Honda plans to build two new plants in U.S.

By Hans Greimel
Associated Press

TOKYO Honda Motor Co. will build new plants in Japan, the United States and Canada to boost production amid soaring demand for its vehicles, the company's president said today.

The two auto plants each in Japan and the U.S. and an engine plant in Canada are aimed at meeting an ambitious 34 percent increase in annual sales to 4.5 million vehicles a year by 2010, Honda President and CEO Takeo Fukui said.

He did not specify the location of the auto plant in the United States.

The automaker has two plants in Ohio and one plant in Alabama. It also has a plant each in Canada and Mexico.

Besides the new plants, the company will double production in Brazil to 100,000 units by 2008, and double output in India to 100,000 by 2007, Fukui said.

The U.S. plant will cost an estimated $400 million and will employ 1,500 workers, Fukui said. That plant would boost the company's North American production capacity from 1.4 million to 1.6 million vehicles per year.

The U.S. plant is Tokyo-based Honda's sixth in a region that accounts for about half the company's annual global sales.

Honda sold 1.65 million units in North America last year, including Mexico and Canada, and forecasts sales to rise to 1.72 million units in the current year.