For the first time in 30 years, Honda is building a new manufacturing facility in Japan. At least initially the plant will manufacture advanced fuel-efficient powertrains.

BusinessWeek reports that Honda will invest about $250 million in the new plant, which will be capable of mass-producing gas and electric hybrid systems. Automotive News adds clean diesels and a new-generation VTEC conventional engine to the likely production mix, with the VTEC and Honda's new V10 (destined for the NSX replacement) as the planned first production lines for the plant.

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