Originally Posted by WSJ

By NORIHIKO SHIROUZU
May 15, 2006 5:53 p.m.

DETROIT -- Honda Motor Co., running out of manufacturing capacity thanks in part to strong sales of the redesigned Civic car, has decided to build a new plant in North America, individuals familiar with the move said.

It wasn't clear immediately where the Japanese auto maker is adding new manufacturing capacity or what product it is building, but the individuals who spoke on condition of anonymity said Honda is especially short to capacity to produce passenger cars, such as the Civic.

One possibility, they said, is for Honda to build in North America a recently launched mini car called the Fit, whose demand the individuals said is likely to grow as consumers buy more fuel efficient vehicles in response to rising gasoline prices.

According to Honda, the Fit goes 38 miles a gallon of gas on the freeway. Currently Honda bring in from Japan all of Fits it sells in the U.S.

The individuals said Honda will likely announce plans for the new car plant later this week, when Honda President and Chief Executive Takeo Fukui is scheduled to hold a media conference in Tokyo.