Honda Plans to Increase Production in U.S.

Washington DC March 1, 2006; The AIADA newsletter reported that Honda may expand its Alabama plant or add a new plant in North America in order to meet the rising demand for its fuel efficient models, reports Bloomberg.

High demand for Civics has resulted in a shortage of the model, and Honda will look to import the models from Japan and the U.K. "In the short term we are looking at raising imports from Japan and the U.K. to meet demand," Honda CEO Takeo Fukui said. "On a medium- or long-term basis, we should look to increase production in North America and we are making a plan for that at the moment.''

Honda can manufacture up to 1.4 million cars and light trucks a year at its North American plants. Fukui said the automaker is near its goal of making 80 percent of its vehicles in North America.