DETROIT (Reuters) - Honda Motor Co Ltd will build a hybrid version of its popular Civic compact car at its Indiana plant, where the Japanese automaker is spending $40 million to boost production capacity by 25 percent.
With the investment, Honda will be able to build 250,000 vehicles a year, an increase of 50,000, starting early in 2013.
Honda will begin building the Civic Hybrid in Indiana early next year as well. The automaker currently builds this model, its top-selling hybrid in the U.S. market, in Japan.
Later this year, the plant in Greensburg, Indiana, will hire 300 new workers in stamping, assembly and other operations. The plant now employs more than 2,000 people.
Honda builds the traditional gas-powered and natural gas-powered versions of the Civic at the Indiana plant as well as the Acura ILX sedan.
With the additional capacity in Indiana, Honda will be able to make 1.72 million vehicles a year in North America. When Honda begins building its Fit subcompact in 2014, the Japanese automaker will be able to build nearly 2 million vehicles a year.
(Reporting By Deepa Seetharaman; editing by Gunna Dickson)