Honda to Boost U.K. Output

Honda Motor Co. is investing 267 million ($425 million) to expand engine and vehicle capacity at its manufacturing complex in Swindon, England.

The company expects to hike the facility's annual capacity to 250,000 small cars and crossover vehicles within three years from 183,000 in 2012. Honda plans to export 60% of the factory's output to Europe, the Middle East, Africa and Australia.

The higher output will allow Honda to reduce its exposure to the strong yen. The company, which currently imports 40% of the vehicles it sells in Europe many of them from Japan has lost money in the region for three consecutive years.

Honda aims to be profitable in Europe in the next fiscal year, which ends in March 2014. By then, cars sourced from Swindon will account for 80% of the company's volume in the region.

Honda is currently retooling the Swindon facility for the latest generations of the Civic compact car and CR-V crossover and a new 1.6-liter diesel engine. The factory also makes the Jazz subcompact.

Honda joins BMW, Jaguar Land Rover, Nissan and Toyota, which also have announced plans to expand their U.K. operations. The country is exporting more cars than it imports for the first time since 1976.