Honda Announces New U.S. Plant

Honda Motor Co. plans to build new plants in the United States and Japan, boosting vehicle production by some 400,000 a year to help keep pace with strong demand, the company's president said Wednesday.

The U.S. plant will cost an estimated $400 million and will employ 1,500 workers, he said.

Honda has not yet decided where to build that plant, which would boost the company's North American production capacity from 1.4 million to 1.6 million vehicles, Honda President and Chief Executive Takeo Fukui told a news conference.

Honda has two assembly plants in Ohio and one plant in Alabama. It also has a plant in Canada and one in Mexico.

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