DETROIT—Honda Motor Co. is building an $800-million factory in Mexico to make small cars for the North American market, creating 3,200 jobs in the state of Guanajuato.

The company says the 5.66 million square meter plant will meet growing demand for small cars in the region and will have an annual capacity of 200,000 cars and engines when it opens in 2014.

The new plant will increase Honda’s automobile production capacity in North America from the current 1.63 million units to 1.83 million units in 2014.

In 2010, more than 87 percent of Honda and Acura cars and light trucks sold in America were produced in North America

Honda also says it will restart a second shift at a factory in Marysville, Ohio, to build more Accord and Acura TL midsize cars. Shifts also will be added at plants that make the Civic in Greensburg, Ind. and Alliston, Ont.

Honda’s Alliston plant—which builds the Civic sedan, Civic coupe, Civic Si coupe and sedan, and the Civic HF—will return to full, two-shift operations in September after consolidating to a one-shift operation in May to cope with part shortages in the wake of the earthquake and tsunami in Japan.

The automaker will also add second shifts to its plant in Greensburg, Ind., which makes the Civic sedan and its Marysville, Ohio facility, wher it makes the Accord sedan and coupe and the Acura TL.