Honda to Build New Factory in China for Compact Cars: Nikkei

By Reuters
October 18,2016
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A flag with the company logo flies outside the Honda Motor Co. plant in Yorii, Saitama prefecture, Japan, March 8, 2016. REUTERS/Thomas Peter

TOKYO (Reuters) - Honda Motor will build a new factory in Wuhan, China, that would begin producing compact cars in spring 2019, boosting its output capacity in the country by about a fifth, the Nikkei business daily said on Tuesday.

Japan's third-largest automaker by sales will spend "hundreds of millions of dollars" on the plant, which will start with capacity of 120,000 cars a year and gradually double in line with demand, the paper said.

The factory will be operated in a joint venture with local partner Dongfeng Motor Group, the Nikkei said.

Media representatives at Honda were not immediately available to comment.

China introduced a tax break a year ago that effectively shaves $1,000 off the price of passenger cars with engines of up to 1.6 liters, the Nikkei said.

 

 

 

(Reporting by Chang-Ran Kim; Editing by Stephen Coates)