Honda is strengthening its hybrid vehicle production capacity in North America. It plans to build a new plant in Ohio, US, and upgrade an existing facility in Canada, targeting a start of operations during 2029.
Honda announced plans to build a new four-wheel vehicle plant in Ohio, US, to meet demand for hybrid vehicles in North America. The new plant will have annual production capacity of up to 240,000 vehicles, raising total four-wheel vehicle production capacity in North America from the current 1.67 million vehicles to 1.91 million. Construction investment is expected to total approximately ¥474.7 billion (approximately $3 billion), with approximately 2,000 jobs expected to be created. The new plant is targeted to begin operations during 2029, subject to final government approval. The plant is expected to have equipment capable of producing next-generation hybrid vehicles and internal-combustion-engine vehicles.
In Canada, meanwhile, Honda will upgrade the facilities of Honda of Canada Mfg. in Ontario and invest in production of next-generation hybrid vehicles and powertrains. The current investment includes approximately ¥18.6 billion (approximately CAD 166 million), while total investment including future additional investment and related costs will amount to approximately ¥97.1 billion (approximately CAD 867 million). These measures are intended to strengthen the supply network supporting Honda's North American operations.
The North American expansion plan also includes upgrades and new construction at the Alabama finished-vehicle plant, Anna Engine Plant, Ohio Transmission Plant and Georgia Transmission Plant, with production capacity for engines and hybrid systems expected to increase substantially. From 2029 onward, Honda plans to successively introduce large hybrid vehicles in the D segment and above for the North American market, strengthening production capabilities for multiple models.
The North American investment plan follows the announcement in May of Honda's policy prioritizing hybrids and gives concrete form to that policy. The North American investments could also affect plans for new models in Japan, although the positioning and timing of the plans differ by region. Honda plans to confirm specifications and launch timing for individual models through separate announcements.