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The strengthening dollar is making the U.S. less attractive as a low-cost manufacturing site, but you'd never get that impression looking at the expansion plans launched by most foreign-based automakers in the U.S. and Canada.

Honda, Toyota and Nissan all are planning to build more vehicles and components in North America during the next several years, and more aggressive expansions - possibly even new assembly plants - are rumored at several Japanese and German sites, although official spokesmen discount those reports.

Even smaller operations, such as Subaru-Izuzu Automotive in Lafayette, IN - which barely survived the early 1990s - now are expected to add another product and significantly increase production capacity, thanks to the skyrocketing U.S. sport/utility (SUV) market. Isuzu Motors Ltd. reportedly is making plans to build a small SUV similar in size to its compact Amigo at the site, in the m model year. Adding the Amigo to the already popular Honda Passport, Isuzu Rodeo and Subaru Outback could force a capacity increase from 180,000 to 240,000 annually, officials say.

The only transplant not benefiting from the SUV craze is CAMI in Ingersoll, Ont.. It builds General Motors Corp.'s and Suzuki's slow-selling Geo Tracker and Suzuki Sidekick: unrefined small sportutes that haven't managed to catch the public's fancy and now face stiff competition from the likes of Toyota's RAV4. Production at the Canadian plant has plummeted in the past year, forcing layoffs and buyouts.

There are reports that exports to Japan may be scaled back somewhat, but even though the Japanese yen and German mark have plummeted against the dollar in the past year, foreign manufacturing operations are continuing to grow, particularly those for engines and light trucks.

The universal explanation from Japanese and German automakers: currency rates fluctuate too much to impact long-term strategic manufacturing plans.

Despite reports to the contrary, for instance, a spokesman says Honda North America Inc. still plans to export 150,000 vehicles yearly from North America by 1998 or 1999, up from about 90,000 now.

# posted by Medical Information : 4:31 AM