Honda may spend $650 mln to restore flood-hit Thai plant - Nikkei

TOKYO (Reuters) - Honda Motor Co <7267.T> will completely overhaul its flood-hit factory in Thailand in a project that could cost more than 50 billion yen, the Nikkei business daily reported on Sunday.

Thailand's worst floods in half a century late last year hit Honda the hardest among Japanese automakers, with its 240,000-cars-a-year plant in the Ayutthaya Province in central Thailand submerged under water.

Honda, Japan's No. 3 car producer, has already started replacing equipment with the aim of resuming output in April, the Nikkei said.

Refurbishing the flood-hit factory will almost be the equivalent of building a plant from scratch, the Nikkei quoted an unnamed Honda executive as saying.

Honda may receive payment from insurers, which are still assessing damage at the factory, as early as in the current financial year to March, lessening Honda's financial burden to a certain extent, the Nikkei said.

(Reporting by Nathan Layne, Editing by Jonathan Thatcher)

Source;
http://www.moneycontrol.com/news/wire-news/honda-may-spend-36650-mln-to-restore-flood-hit-thai-plant-nikkei_651354.html

Honda Plans $500 Million Car Plant in Mexico, Financiero Says

Honda Motor Co., Japan’s third- largest automaker, plans to invest at least $500 million to build a car factory in Mexico, El Financiero newspaper reported.

The plant will likely be located in Salamanca, a city in the central state of Guanajuato, and construction would begin next year, El Financiero reported, citing Mexican Economy Ministry officials it didn’t identify by name.

Honda’s press office in Mexico City declined to comment on the report by El Financiero. Nikkei newspaper in Japan said earlier this week that Honda will build an auto plant in Mexico that produces the Fit compact car and will begin operation in 2014.

Honda has a plant in Mexico’s southwestern state of Jalisco, according to its website.

Source;
http://www.bloomberg.com/news/2011-08-02/honda-plans-500-million-car-plant-in-mexico-financiero-says.html