Honda to spend $3B on new hybrid vehicle plant in Ohio

Honda Motor Co. plans to build a $3 billion factory in central Ohio to manufacture its next-generation hybrids, boosting its output capacity for the popular vehicles. The Japanese automaker announced the new plant on Nov. 9, which is expected to start production in 2029 and expand output by 240,000 vehicles a year. Honda has been mulling over the decision for months as part of a strategic pivot earlier this year away from all-electric vehicles. It aims to introduce 15 new hybrids globally by March 2030, primarily targeting North America. “These investments strengthen America’s role as a cornerstone of Honda’s global future,” Bob Nelson, executive vice president of the company’s U.S. business operations, said in a statement. Honda’s U.S. sales have risen 5% in the first 10 months of the year, powered by strong demand for hybrid versions of its best-selling CR-V compact SUV, Accord midsized sedan and compact Civic sedan. Fuel-efficient hybrids, which make up about a third of the company’s total sales volume in the U.S., have caught on with cost-conscious buyers as gas prices have soared. Honda is preparing to introduce a new system that will provide hybrid options for its larger, V6 engine-powered vehicles such as the Pilot SUV and upscale Acura MDX SUV. Honda is investing in our next 50 years in America. Today, we announced plans to establish a new $3 billion auto plant in Ohio, creating more than 2,000 jobs and expanding our U.S. auto production capacity to almost 1.3 million vehicles a year using domestic and globally made parts. The facility is part…

This story was originally published by Transport Topics. Read the full story at Transport Topics →