Nikkei. Honda Motor has begun manufacturing a flexible-fuel version of the Fit subcompact at its plant in Brazil. It is the second flex-fuel car to be produced at the factory following the Civic compact sedan, which it started to make in November. (Earlier post.)
In Brazil, flex-fuel vehicles account for almost 80% of all new car sales. Honda plans to expand its flex-fuel presence in that market before marketing similar models in North America and elsewhere.
The Brazilian plant can now turn out a total of 78,000 Civics and Fits annually, but Honda plans to expand the facility in August 2007 to increase its annual output capacity to 100,000 units.
Of the 80,000 vehicles Honda plans to sell inside the country, 30% are expected to be flex-fuel models, which typically cost more than gasoline-powered cars.
Toyota Motor plans to produce a flex-fuel model of the Corolla sedan as early as the beginning of next year.