A spokesman for Honda Motor Company says it is considering building a new plant in Mexico to supply cars for the North American market.

The Nikkei business daily said Sunday that Honda may build a new 260 million dollar plant near the company’s existing factory in Jalisco, Mexico. That facility produces sports utility vehicles.

The report said Honda expects the new plant to produce around 100,000 compact cars yearly when it opens in 2014.

Construction on the new factory could begin next year.