Honda to boost China engine capacity by 40 pct- Japanese newspapers

TOKYO, Dec 12 (Reuters) - Honda Motor Co (7267.T: Quote, Profile, Research), Japan's second-biggest car maker, plans to spend 30 billion yen ($271 million) to build a 200,000 unit-a-year engine plant in Guangzhou in China, boosting its engine capacity there by 40 percent, the Nikkei business daily reported on Wednesday.

Guangzhou Honda Automobile Co -- Honda's equally owned joint venture with Chinese partner Guangzhou Automobile Group Co -- will form a new unit that will produce 1.3- and 2.4-litre gasoline engines for such models as the Accord, Odyssey and Fit in 2009, the paper said.