Honda ups production of fuel-efficient cars

0 Comments | AFP, May, 2008

TOKYO (AFP) — Honda Motor said Wednesday it will spend 1.5 billion dollars on two new plants as it steps up production of fuel-efficient cars, including a cheaper hybrid due to be launched early next year.

Japan's second-largest automaker will build a plant making fuel efficient engines in 2009 and a new manufacturing plant in 2010, both in Japan, Honda Motor president Takeo Fukui told a press conference.

Honda confirmed it was on track to introduce in early 2009 what it describes as an affordable hybrid.

Hybrids are equipped with an electric motor and a standard petrol engine, making them more economical and environmentally friendly than conventional autos.

It is aiming for initial annual sales of 200,000 of the compact five-door passenger size car....