Key facts
- Honda Motor is in the final stages of planning a new hybrid vehicle production plant in Ohio.
- The proposed investment is between 300 billion and 400 billion yen ($1.90 billion to $2.53 billion).
- The plant is expected to start production in 2030.
- Honda plans to introduce 15 new hybrid models by March 2030, primarily targeting North America.
- The company is also expanding hybrid production at existing Ohio plants.
- A final investment decision is expected within the next few years.
Honda Motor is in the final stages of discussions to build a new hybrid vehicle plant in the U.S., with an investment of 300 billion to 400 billion yen ($1.90 billion to $2.53 billion), according to Nikkei. The Japanese automaker is considering a final investment decision within the next few years, aiming for operations to commence around 2030. The proposed facility would focus on producing hybrid sport utility vehicles.
This move aligns with Honda's revised strategy to strengthen its hybrid lineup, with plans to launch 15 new models, primarily for the North American market, by fiscal 2029. This pivot follows the company's earlier decision to cancel several battery-electric models earmarked for the U.S. Honda is also expanding hybrid production at its existing Marysville and East Liberty assembly plants in Ohio.
Noriya Kaihara, Honda's executive vice president, stated that additional capacity is necessary to meet customer needs, and the next production facility is planned for North America. Hybrids currently constitute about a third of Honda's U.S. sales, driven by strong performance from models like the CR-V, Accord, and Civic hybrid trims. The company has noted that demand has outpaced its current manufacturing capabilities.
However, the timeline and final plans for the new plant may be influenced by ongoing negotiations for the United States-Mexico-Canada Agreement (USMCA). Honda has indicated that it may adjust its plans depending on the outcome of these trade talks, particularly in light of U.S. President Donald Trump's threats to impose a 50% tariff on automobiles and auto parts imported from Canada.