Honda rumored to be considering building a new hybrid plant

Media reports are claiming that Japanese automaker Honda is planning to invest 8 billion yen to build a new plant in western Japan.

This plant would be used by the company to produce key components for its hybrid cars, which are becoming more and more popular in the markets around the world.

Honda is expected to build this plant on the grounds of their Suzuka factory in Mie prefecture. This would help them quadruple its output capacity for electric motors to 200,000 units a year.

Japan’s business daily Nihon Keizai added that this plant is expected to become operational as early as 2008 and would further enhance Honda’s capabilities against Toyota’s hybrid plans.

Honda has not commented on these rumors yet but they have indeed mentioned in the media that they plan to bring a new hybrid model to market by 2009.

Honda in addition also has plans to build a 70 billion yen plant in Saitama in Japan.

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