Honda, the Japanese motor manufacturer, yesterday brushed aside controversy over Britain and the euro to underline its commitment to investment in the UK, writes Geoff Gibbs .

Speaking at the official opening of the first new greenfield car manufacturing plant to be built in Britain for more than eight years, Honda president Hiroyuki Yoshino said he viewed exchange rate differences between sterling and the Euro as a "kind of challenge" to improve competitiveness.

In a swipe at competitors he said: "While others are running away, we believe the UK is a great place to build cars. Certainly it's more convenient for us if the UK joins the euro, but it is not something we should comment on."

The £130m Swindon plant - built alongside the group's existing Swindon facility - brings Honda's total investment in the area to £1.15bn and will lift its European manufacturing capacity from 150,000 to 250,000 cars a year. The expansion has led to the creation of 1,000 jobs.

Mr Yoshino did not rule out the possibility of further investment in Britain. But he said any decision would depend on the performance of the UK opera tions which now account for 8% of the group's worldwide production capacity.

The expanded Swindon operation will become Honda's sole production facility for the new Civic three-door model, which will be exported to Japan and north America. It will also supply the new 2002 CR-V for north America.