Suzuki to invest $1.6 billion at new plant by 2011

TOKYO (Reuters) - Suzuki Motor Corp (7269.T: Quote, Profile, Research, Stock Buzz) plans to invest 188 billion yen ($1.6 billion) by the end of 2011 on a third domestic car plant as it has decided to add the production of diesel engines there, the automaker said on Tuesday.

Suzuki initially planned to make gasoline engines at the plant in Shizuoka prefecture, west of Tokyo, but decided to make diesel engines as well because of robust demand, particularly in Europe, Suzuki spokesman Shigeyuki Yamamura said.

Suzuki plans to soon export 1.3-liter-class diesel engines produced in India to Europe and wants to make bigger ones such as 2-liter-class diesel engines in Japan to export them globally, the spokesman said.