Suzuki to build new factory in Japan

Suzuki to build new factory in Japan

In addition to Suzuki's ramped up production plans, the company also raised its sales forecast to 3 trillion yen US$26.1 billion for the current business year through March 2007, from an earlier outlook of 2.8 trillion yen.

The move comes as the company, based in Hamamatsu, southwest of Tokyo, taps surging demand for gas-sipping mini cars, which have engines of up to 0.66 liters. Demand is being fueled not only by high gasoline prices but Suzuki's deepening alliance with Nissan Motor Co. following the loosening of ties with troubled General Motors Corp. earlier this year, the AP reports.