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Honda to scale down business amid global economic woes

(Xinhua)
Updated: 2008-12-17 13:56

TOKYO -- Honda Motor Co. plans to delay the opening of a new factory in Yorii, Saitama Prefecture of Japan, and freeze the debut of the luxury Acura brand cars due to plummeting global auto sales, Kyodo News Agency reported Wednesday.

Japan's second-largest automaker is considering delaying the start of operations at the Saitama factory from the initial opening in 2010 and will put off the timing of bringing the factory's output to its full capacity of 200,000 vehicles per year.

The company had originally expected to spend a total of 158 billion yen for the Yorii car factory and in a nearby engine factory in the town of Ogawa in the same prefecture, but those investment plans will also be scaled down, Kyodo quoted informed sources as saying.

For the Acura series, Honda will freeze plans to introduce the luxury vehicles in Japan and Russia around 2010.

Honda will hold a press conference later in the day to disclose revised earnings forecast for the current business year.