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Honda to invest $3 billion in new vehicle assembly plant in Ohio
CNBC • • general
Key Points:
- Honda Motor announced a $3 billion investment to build a new vehicle assembly plant near its existing facilities in Marysville, Ohio, expected to start production in 2029 with an annual capacity of 240,000 vehicles and over 2,000 new jobs.
- The new plant will produce traditional internal combustion engine vehicles, all-electric vehicles, and hybrids, aiming to increase Honda's U.S. light-duty vehicle production capacity to 1.3 million units annually.
- This is Honda's first new mass production U.S. vehicle assembly plant since 2008, reflecting a broader industry trend of localizing production amid tariffs and rising logistics costs.
- The investment follows Honda's suspension of an $11 billion EV and battery production plan in Canada and aligns with efforts to boost American-made vehicle sales, with over 60% of Honda vehicles sold in the U.S. currently produced domestically.
- Honda emphasized the importance of U.S. manufacturing capacity for competitiveness and warned of significant risks to the automotive industry if the U.S. and Canada fail to secure a new trade deal by year-end, potentially leading to doubled tariffs on Canadian vehicles and parts.
