NEW YORK (Kyodo) Honda Motor Co. said Wednesday it will build a new assembly plant in Indiana, its sixth in North America.

The $550 million plant, with an annual capacity of 200,000 vehicles, will be built near the town of Greensburg. Production is expected to begin in the fall of 2008 and the plant will employ 2,000 workers, the company said in a press release.

Honda plans to build "fuel-efficient 4-cylinder vehicles" at the plant to take advantage of the growing popularity of cars with smaller engines.