Honda Motor Co. is investing 28 billion yen (US$265 million; euro 205 million) to build its fourth factory in China, part of the Japanese automaker's plan to nearly double annual production capacity in the country by 2006. The plant, a joint venture with Guangzhou Auto Group Corp., will begin operating in the latter half of 2006 in the southern city of Guangzhou with an annual production capacity of 120,000 vehicles, Honda said Tuesday. The announcement comes a day after the Tokyo-based automaker said it will quadruple production at another car-assembly plant, which now produces the CR-V sport utility vehicle, to 120,000 by 2006. Honda has a third plant that builds the Accord sedan, Odyssey minivan and Fit subcompact in at a factory in the southern city of Guangzhou with a production capacity of 240,000 vehicles per year. It is also building another factory especially for exports in a separate venture with Guangzhou Auto Group and Dongfeng Motor that will be capable of producing 50,000 vehicles a year. The expansion will bring Honda's total annual output capacity in China to 530,000 vehicles, up from 270,000 now, the company said.
