Mazda to Erect Engine Plant in Mexico

Mazda Motor Corp. plans to invest $120 million in a new engine factory next to the car plant it is building in Salamanca, Mexico.

Mazda aims to begin production in the first quarter of next year with annual capacity to make 230,000 engines. The adjacent assembly plant is scheduled to begin making the Mazda2 subcompact and Mazda3 compact cars for the U.S. and Latin American markets.