Honda plans to set up second factory

Honda Motors, Japan’s second largest carmaker, is in talks with its Chinese joint venture partner and the Chinese government to set up a new plant to produce compact cars for export to Japan and the US, Nihon Keizai Shimbun said. The new plant would be built near Honda’s existing joint venture with Guangzhou Auto Group. Honda holds a 50 per cent stake in that company, Honda- Guangzhou Auto Group, but hopes to have a majority stake in the new venture. It would have an annual capacity of 100,000 vehicles.