Honda to invest £200m in British factory

Honda said Tuesday it will spend £200 million ($300 million) to upgrade a British factory that the Japanese automaker downsized last year owing to a slump in European demand.

The company said it was aiming to turn its Swindon plant in western England into a global production hub for its five-door Civic compact. Japan's number-three automaker said the cash would help improve the plant's efficiency and boost the number of passenger cars that can roll off its assembly lines. The factory presently has the capacity to make 250,000 vehicles annually.

"As a global production facility for the Civic five-door model, we look forward to making the most of the opportunity to export this model not only to our European customers, but also, to key global markets," Jason Smith, director of Honda of the UK Manufacturing, said in a statement.