Honda Motor Co. will spend $84m and hire 100 more workers to expand production of light trucks and engines at its assembly plant in Lincoln, Alabama. The investment will boost annual capacity to 340,000 vehicles and engines by 2013 from 300,000 now. The plant employs more than 4,000 people.
Asian automakers are expanding output capacity in North America as U.S. sales recover from a recession in 2008 and 2009. Demand for new cars and trucks grew 10 percent this year through October, and most companies and analysts are forecasting total sales of 12.5 million to 13 million vehicles in 2011.
The news came at the same time that officials said Honda plans to operate normal production shifts at plants in the U.S. and Canada in December as it continues to recover from shortages of parts from Thailand. Honda had to reduce output in North America this month because of shortages caused by flooding in the Asian nation.
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