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Honda to Increase Green Car Output Until October

Encouraged by increase in sales when the Japanese government granted tax incentives for low-emission cars, the country’s No. 2 automaker announced it is boosting its output until October in two of its factories.

Honda bared plans of extending additional one to two days of weekend work at its Suzuka factory and at a plant in the Saitama Prefecture. Suzuka manufactures the Insight hybrid and Fit subcompact and has a daily output of 1,600 units. The Saitama plant makes the Fit and the Freed minivan and has a daily output of 1,100 units. In addition, it is restarting a second shift at one of two lines at its Sayama plant to increase daily output from 550 to 900 cars.

All in all, Honda’s weekend output would be an estimated 13,900 units starting this month until October.

Honda became one of the early birds to take advantage of the demand for fuel-efficient cars. The innovative petrol-electric Honda Insight was the first hybrid car to top the sales chart in the home market, unseating the Fit as number one with 10,481 sales.

The Japanese government had implemented tax incentives for fuel-efficient cars to encourage CO2 emissions reduction as well as to push consumers into replacing their old automobiles with green cars.

This policy had since benefited Honda and rival automakers Toyota and Nissan.

Nissan has already announced plans to expand its line of hybrid cars in order to catch up with its rivals. Nissan is seeing the launch of a hybrid version of its Fuga sedan—which is equipped with lithium-ion batteries—late next year.

Honda intends to launch two new hybrid cars next year –– the CR-Z hybrid sports car next February and the gasoline-electric Fit at the end of 2010. These two new additions will enhance its bestselling lineup of hybrid cars, which are characterized by their compact size, lightness, and efficiency.

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