Honda Said to Plan 1 Billion Reais Compact Car Factory in Brazil

Honda Motor Co. (7267), Japan’s third-largest automaker, plans to invest 1 billion reais ($435 million) building a second factory in Brazil, two people familiar with the matter said.

The plant, located in Itirapina, about 200 kilometers (124 miles) northwest of Sao Paolo, will start production of compact cars from 2015, the people said, confirming an earlier Estado de S. Paulo report. The people asked not to be identified because the company hasn’t publicly disclosed the investment.

Brazil, the largest auto market in Latin America, will probably see economic expansion accelerate to 2.3 percent this year and 3.1 percent next year, according to the median of analyst estimates compiled by Bloomberg.

To contact the reporter on this story: Yuki Hagiwara in Tokyo at yhagiwara1@bloomberg.net

To contact the editor responsible for this story: Young-Sam Cho at ycho2@bloomberg.net

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