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.
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