Honda Motor plans to invest $3 billion in a new vehicle assembly plant near its Marysville, Ohio facilities. The plant is expected to begin production in 2029 and create more than 2,000 jobs. The move comes as automakers try to localize production amid tariffs and high logistics costs.
Honda Motor plans to invest $3 billion in a new vehicle assembly plant in Ohio, the automaker announced Monday. The facility will sit near Honda's other operations in Marysville.
Honda said the plant is expected to begin production in 2029, have a capacity for 240,000 vehicles annually and create more than 2,000 jobs. It is expected to build internal combustion, all-electric and hybrid models, and the company said the plant will focus on hybrids.
What the plant adds to Honda's US footprint
The plant is expected to increase Honda's light-duty vehicle capacity to 1.3 million units annually in the U.S. Honda currently has 12 manufacturing plants in the United States, eight of which produce engines or light-duty vehicles.
It would be the company's first new mass production U.S. vehicle assembly plant since it opened a facility in Indiana in 2008. Bob Nelson, executive vice president of American Honda Motor, said at the announcement: "This is not simply an investment in another plant."
Tariffs and capacity pressure
The auto industry has been trying to localize more production amid President Donald Trump's tariffs and inflated logistics costs that have cut into profits. Honda's announcement comes roughly two weeks after Audi said it would invest more than $4 billion in its first U.S. manufacturing facility in Georgia.
Honda's own capacity is tight. Jennifer Thomas, senior vice president of corporate affairs at American Honda Motor, said Oct. 27 that Honda is at capacity and exploring all options.
The announcement also follows Honda's decision in May to indefinitely suspend an $11 billion investment plan for all-electric vehicles and batteries in Canada.
Source: CNBC
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