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Honda Plans $500 Million Car Plant in Mexico, Financiero Says

Honda Motor Co., Japan’s third-largest automaker, plans to invest at least $500 million to build a car factory in Mexico, El Financiero newspaper reported.

The plant will likely be located in Salamanca, a city in the central state of Guanajuato, and construction would begin next year, El Financiero reported, citing Mexican Economy Ministry officials it didn’t identify by name.

Honda’s press office in Mexico City declined to comment on the report by El Financiero. Nikkei newspaper in Japan said earlier this week that Honda will build an auto plant in Mexico that produces the Fit compact car and will begin operation in 2014.

Honda has a plant in Mexico’s southwestern state of Jalisco, according to its website.

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