Honda to invest $3 billion in Ohio hybrid plant, production from 2029

The Ohio plant

Honda will spend about $3 billion on a new car plant in Ohio, the company said on Monday, 9 November. The factory will be built between Honda's existing East Liberty and Marysville sites, with production due to start in 2029 and capacity of 240,000 vehicles a year. Honda expects more than 2,000 jobs to be created, and the start of operations depends on approval from the relevant authorities. The plant will focus on hybrids but will also be able to build petrol and battery electric vehicles. Bob Nelson, executive vice president at American Honda, spoke at a press conference in Marysville.

“It will have the capability to produce hybrids, gasoline-powered, and battery electric vehicles, giving Honda the ability to adjust our production as customer demand and market conditions change.”

Capacity and spending across North America

The Ohio factory lifts US annual capacity to about 1.3 million vehicles, and North American capacity rises from 1.67 million to 1.91 million units. Honda also plans further spending in Ohio, Alabama and Georgia. In Alabama it will build a new V6 hybrid engine, while engine and transmission plants in Ohio and Georgia will be converted. In Canada, the company has committed C$867 million (about US$613 million), including C$166 million for its Alliston, Ontario plant, which will keep 4,000 employees. The Canadian government will invest C$313 million in the Alliston project.

Before Ohio plant1.67

After Ohio plant1.91

Before Ohio plant

1.67 million vehicles

After Ohio plant

1.91 million vehicles

Data from the article text

Shift away from EVs

Honda's hybrid push traces back to May, when chief executive Toshihiro Mibe said the company would introduce 15 new models by 2030, primarily for North America. The same plan dropped EV sales targets and indefinitely suspended an $11 billion EV project in Canada, as part of a $9 billion writedown tied to electric vehicles. The Financial Times linked that reversal to Honda's first annual loss in 70 years and ¥1.6tn ($10bn) of EV-related losses. Mibe came under pressure to step down earlier this year. Honda shares have since rallied 50%, close to a record high, while US sales are up 5% this year on strong demand for hybrid versions of the CR-V, Accord and Civic. Higher petrol prices caused by the Iran war have lifted demand for hybrids in the US, while EV demand has stayed muted after subsidies were removed.

Tariffs and rival investment

Japanese carmakers have struggled with US tariffs of 15% on imported vehicles and components, and hybrid systems are especially exposed because they have less US production. Toyota said it would invest almost $1 billion to strengthen hybrid production in five US states. Audi announced a plant in Georgia worth more than $4 billion last month, and Toyota announced a $3.6 billion truck assembly line in Texas in July, shifting part of its production from Mexico. The Financial Times called the Honda pledge the first large commitment from a Japanese company since the midterms.

Honda Ohio plant3

Audi Georgia plant4

Toyota Texas assembly line3.6

Honda Ohio plant

3 $ billion

Audi Georgia plant

4 $ billion

Toyota Texas assembly line

3.6 $ billion

Data from the article text