Auto industry: Honda is building a new hybrid plant in the USA for three billion dollars
In view of weak electric car plans, the Japanese car manufacturer is increasingly relying on hybrid models
Quick Look
- Honda is investing three billion dollars in a new hybrid plant in Ohio with 2,000 jobs and an annual capacity of 240,000 vehicles from 2029.
- The company is shelving its electric car plans and expanding production in North America.
AI-generated summary
Why It Matters
In view of weak electric car plans, Honda is increasingly relying on hybrid models and is expanding its production capacities in North America. In May, the group announced that it would bring 15 new hybrid models onto the market worldwide by 2030 and abandoned its sales targets for purely electric cars. A $9 billion write-down on the electric car business was taken.
In view of weak electric car plans, the Japanese car manufacturer is increasingly relying on hybrid models and is expanding its production capacities in North America.
A prototype of an Acura hybrid SUV from Honda: Honda is expanding its hybrid production in the USA. Photo: Bloomberg
Washington. The Japanese car manufacturer Honda wants to build a new plant for hybrid vehicles in the US state of Ohio for three billion dollars. The company announced on Monday that this will create 2,000 jobs. The factory will be able to produce 240,000 vehicles annually and will begin production in 2029. This will increase annual US production capacity to 1.3 million vehicles and North American capacity to 1.9 million.
The investment is part of a strategic realignment. Honda announced in May that it would bring 15 new hybrid models onto the market worldwide by 2030. The group also gave up its sales targets for purely electric cars and put an eleven billion dollar electric car project in Canada on hold indefinitely.
This was part of a $9 billion writedown on the electric car business. Honda also plans to invest further in building a new V6 hybrid engine in Alabama and retooling engine and transmission plants in Ohio and Georgia.
A number of foreign automakers have announced major new investments in the face of tariffs imposed by US President Donald Trump's administration. Volkswagen subsidiary Audi announced last month that it would build a $4 billion assembly plant in Georgia.
The Reuters news agency had reported that the Trump administration had promised Audi tariff relief in return for the investment. In July, Toyota announced it would build a new truck assembly line in Texas for $3.6 billion and shift some production from Mexico to the United States.
What to Watch
AI outlook — possibilities, not facts
Honda will begin production at the new hybrid plant in Ohio in 2029.
Very likely · Within years
Honda will launch 15 new hybrid models worldwide by 2030.
Likely · Within years
Open Questions
- Which specific hybrid models will be produced at the new plant in Ohio?
- What conditions were agreed for the alleged customs relief for Audi?
- How will the postponement of the electric car project in Canada affect the Canadian labor market?
