HONDA is to build a new small car in Britain, as part of the £450 million expansion of its Swindon factory. The move will create 1,000 new jobs and take Honda's investment at Swindon to £1.15 billion.

The company will spend £130 million on a second plant at the existing Swindon site, raising production from 150,000 to 250,000 vehicles a year by the end of 2002, £200 million on new model production development and £120 million on improving existing facilities. The Accord, Civic five-door and Civic Aero deck are built at Swindon. These are due to be joined by the Accord five-door early next year. A new range of Civic models is in the pipeline and, beyond 2002, the new supermini designed for the European market.

The manufacturer already offers a small car, the J-series, in Japan but says that the new European car will not be based on this, although the range will be exported to Europe, including the UK next April to prepare the market for the new car.

Commenting on the decision to invest in the Swindon plant, Honda president Nobuhiko Kawamoto said: 'Britain has one of the best manufacturing environments in the world, with a strong and skilful workforce. This expansion underlines our commitment to a 'globalisation through localisation' philosophy.'