TOKYO, Japan --- Honda this week announced plans to construct a new U.S. auto plant and introduce a new, more affordable hybrid car. The new hybrid car will be introduced in the U.S. and Canada in 2009, the company said. In addition, Honda announced it has set the goal of increasing American Honda's corporate average fuel economy (CAFE) by 5 percent over 2005 levels by the year 2010. Further, the company announced plans to introduce within the next three years new diesel engine technology that meets federal emmision standards. "To meet the needs of our customers and in accordance with our company vision for the future, we will introduce new fuel-efficient vehicles and deepen our commitment to production in North America and we will do this in an environmentally responsible way regarding our products and the operations that produce them," said Koichi Kondo, COO of Honda's North American region and president and CEO of American Honda.

Originally posted on Fleet Financials