Honda Motor Co. said Tuesday it plans to build a new engine plant in Ogawa, Saitama Prefecture, to accelerate efforts to meet rapidly growing demand for fuel-efficient cars.
Honda initially planned to build the new engine plant on the site of its car plant in nearby Yorii that is scheduled to begin production in 2010. Under the new plan, however, the engine plant will start in summer 2009.
"Demand for fuel-efficient cars is growing faster than expected in every part of the world," Honda President Takeo Fukui told a news conference at Honda's headquarters in Tokyo. "Building the new plant prior to the production start of the Yorii plant will enable us to respond flexibly to rising demand."