(RTTNews) - Honda Motor (HMC) advanced in pre-market trading, on reports the company is delaying the launch of its Argentine plant.
The stock was up $2.92 just after 9:15 am ET, rallying to $23.56. If pre-market gains hold, the stock will open at its highest level since mid-December.
Honda Motor has reportedly delayed the construction of a passenger car plant in Argentina by about half a year until mid-2010.
According to the reports, Honda Motor is delaying the construction, citing lower demand in Latin American markets and the persisting economic crisis.
With an estimated cost of about $106 million, the plant is designed to produce 30,000 subcompact cars a year.
Reports quoted Honda spokesman Hideto Maehara as saying, "The new plant, which is still being built, will not start operating until mid-2010. We have to adjust our production as demand in the global auto market continues to fall sharply."
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