Why have Japanese and Korean car manufacturers announced plans for new car plants in the US and Canada? I thought they would invest new production dollars in China, India and Brazil, the cheaper alternative. Can anyone shed any light on this? Honda says new US plant to have room to grow TOKYO (Reuters) - Honda Motor Co. Ltd said on Tuesday its new U.S. passenger car plant in the United States would start small and have room to grow. Honda last week said it would spend $400 million on a fourth U.S. assembly plant in the Midwest that is expected to come on line by 2008. The plant will raise Honda's North American output capacity by 200,000 to 1.6 million vehicles. The plant is part of aggressive expansion plans that also include an engine plant in Canada and a new auto plant in Japan as Honda seeks to boost global sales to 4.5 million cars in 2010, up 34 percent from 2005 levels.