TOKYO (Reuters) - Honda Motor Co, Japan's No.2 automaker, will drop plans to build a new minivehicle factory and focus on its green vehicles business, the Nikkei business daily reported on Thursday.
Soon after the global financial crisis hit in 2008, Honda had announced plans to delay construction of the Yorii factory, north of Tokyo, and a plant for 660cc minivehicles at subsidiary Yachiyo Industry Co, both originally scheduled to start production in 2010.
Honda had initially planned to build clean-diesel and other fuel-saving vehicles at the Yorii factory, but has since abandoned the development of clean diesel engines, planning instead to come up with a new hybrid system to boost fuel economy on its bigger vehicles.
