Honda mulls scrapping plan to build mini-vehicle plant

Honda Motor Co. is considering scrapping a plan to build a new mini-vehicle assembly plant in Japan’s Mie Prefecture, as the automaker does not expect an expansion of the domestic mini-vehicle market amid an ageing population, sources familiar with the matter said. Honda initially planned to open the plant in the latter half of 2010 in the city of Yokkaichi, with an investment of about 50 billion yen (US$575.37 million), but it froze the plan due to the global financial crisis. Meanwhile, Honda is planning to begin operations of a new plant to manufacture gasoline-electric hybrid vehicles in Yorii, Saitama Prefecture, in 2013, whose opening has also been delayed due to the financial crisis. (July 15, 2010)