Honda Motor is nearing the final stages of preparing to build a new hybrid vehicle production plant in Ohio, with plans to invest approximately 300 to 400 billion yen ($1.90 to $2.53 billion). The new plant is expected to commence production by 2030. However, a Honda spokesperson in the U.S. stated that no decisions have been officially made regarding the plant.
Honda’s executive leadership has cautioned that the establishment of this new assembly plant may depend on the future of the US-Mexico-Canada Agreement (USMCA), currently under negotiation. If the USMCA deal is not extended, it may alter Honda’s investment strategy. Honda is currently close to full production capacity in North America and would like the new facility operational by around 2030.
In light of these uncertainties, Honda previously suspended its Canadian electric vehicle project and has made changes to its U.S. production plans, including shifting the production of its five-door Civic hybrid from Japan to Indiana.
