Honda Motor Co. said it will build an $800 million plant in Mexico to produce subcompact vehicles for Mexico and North America. The plant is scheduled to begin operation in 2014 with an annual capacity of 200,000 units.
Honda and other Japanese automakers seek to move car and truck production from Japan because the strength of the yen makes it difficult to make money on exports.
Honda did not identify the model to be assembled in Mexico, but the only subcompacts it sells in the United States and Canada are the Fit and Insight and CR-Z hybrids, which are now built in Japan.
The new Honda plant will be in a suburb of Celaya, Guanajuato, about 210 miles east of Honda's two plants in El Salto, Jalisco, where the company assembles automobiles, motorcycles and auto parts.
More than 87 percent of Honda and Acura cars and light trucks sold in America were produced in North America last year.