With the new plant, Yachiyo will establish a highly efficient and high quality production system by separating production between the existing and the new plants based on product characteristics.
50 Billion yen
Honda's subsidiary Yachiyo Industry Co has today announced plans to build a new plant adjacent to its current Yokkaichi Factory. The plant will require a 50 billion yen (roughly USD 490 million or euro 320 million) investment and will focus on producing front-engined mini cars, the Honda Life and Zest.
The two plants should be able to produce 240,000 units annually with the advantage that the entire production will be at one location. Honda's Kumamoto factory will transfer its mini-vehicle engine production to the new plant, while the transmission production will transfer to Honda's Suzuka Factory. What will happen to the Kumamoto plant is not mentioned.