Honda plans to spend £80 million in its UK factory in Swindon, upgrading the paint shop and plastics operation, taking total investment in the town to £1.38 billion. It includes £16 million for casting diesel engine blocks, a process only Honda Japan has undertaken to date.

The announcement came as the two millionth Honda left the factory production lines. Honda began operation in Swindon 22 years ago and now the factory produces nearly 240,000 cars a year. Seventy per cent of Honda's UK-built CR-V and Civic models are destined for export markets - over 60 worldwide.

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