Honda is planning a new $400 million plant that will build an additional 200,000 vehicles per year and feature what the company calls "the smallest environmental impact of any Honda automobile plant in North America."

The company is in the final stages of selecting a site, which will be revealed at a later date. Production at the facility will begin in 2008, and the plant will employ 1,500 at full capacity.

Honda also said it plans to introduce a more affordable hybrid car in 2009 for both the U.S. and Canadian markets.

"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, chief operating officer of Honda´s North American region.

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