Subcompact car is a North American term used to define automobiles whose class size is smaller than that of a compact car but larger than a microcar.
Honda Motor Company announced that it is planning to construct an $800 million assembly plant in Mexico to manufacture subcompact vehicles for the Mexican and North American markets.
Mexico assembly plant will be the automaker's 8th auto assembly plant in North America.
Honda says that “ the new plant will increase its automobile production capacity in North America from 1.63 million units to 1.83 million units by 2014.”
More than 87 percent of Honda and Acura cars and light trucks sold in America were manufactured in North America last year.