Honda Motor Co. in Guangzhou, China will spend about Y30 billion to increase output of engines by 40% in 2009.
With the increased output, Honda hopes to close in out Germany's VW AG in manufacturing.
Honda has a 50-50 joint venture with Chinese automaker Guangzhou Automobile Group Co.
The new firm will produce eco-friendly and fuel-efficient 1.3- and 2.4-liter engines, the kind that go in Accord, Odyssey and Fit.
Honda also has a joint venture with Dongfeng Motor Corp
that makes about 500,000 engines annually in China.
Last year, Honda sold 350,000 cars in China, up 37%. The company hopes to sell 450,000 this year.
VW makes the most - 700,000 units.
GM and Hyundai - 400-450,000 units each.
Honda is fourth and Toyota is fifth, for now.
Toyota is building an automobile plant in Guangzhou now that will increase its production capacity to 900,000 vehicles.
China sold 7.15 million cars last year and the market is growing by about 10% per year.
Do you think Japanese carmakers will catch GM, Korea and Germany?
