MARYSVILLE, Ohio — Honda engine plans to invest $3 billion to build a new vehicle assembly plant in Ohio, the automaker announced Monday.
Honda said the new plant, which will be located near its other facilities in Marysville, Ohio, is expected to begin production in 2029, have a capacity of 240,000 vehicles per year and create more than 2,000 jobs.
The plant is expected to be capable of producing traditional vehicles with internal combustion engines, fully electric vehicles and hybrid models, which are gaining popularity in the United States.
The plant is expected to increase Honda’s light vehicle production capacity to 1.3 million units per year in the United States. It currently has 12 manufacturing plants in the United States, eight of which produce engines or light vehicles for the automotive industry.
It is the first new mass production vehicle assembly plant in the United States since opening a plant in Indiana in 2008. It also opened a $70 million performance vehicle plant in 2016 and a multibillion-dollar joint venture battery plant earlier this year, both in Ohio.
“This is not just an investment in another factory. This is an investment in the future of Honda manufacturing in America,” Bob Nelson, executive vice president of American Honda Motor, said during the announcement at the company’s American Heritage Center in Ohio.
The auto industry has tried to localize more production amid tariffs imposed by President Donald Trump and inflated logistics costs that have cut into profits.
Honda’s plans for a new factory come about two weeks after Volkswagen-owned luxury brand Audi announced it would invest more than $4 billion in its first U.S. manufacturing plant in Georgia.
Detroit Automakers General engines And Ford engine and international automobile manufacturers Toyota engine and Hyundai Motor also recently said they would spend billions of dollars on new or upgraded facilities in the United States.
Honda’s announcement comes after the automaker in May indefinitely suspended an $11 billion investment plan to produce fully electric vehicles and batteries in Canada. It also canceled three electric vehicles planned for the US market.
Notably, the new Ohio plant is expected to increase Honda’s U.S. production and U.S. sales. Honda said almost all of its vehicles sold in the United States, including its luxury Acura brand, are produced in North America, with more than 60% in the United States.
Honda Motor Co.’s U.S. executive, Jennifer Thomas, recently highlighted the Japanese automaker’s commitment to the United States and the need for additional capacity.
“To be competitive in this market, you’re going to have to make products here,” Thomas, senior vice president of corporate affairs, said Oct. 27 in Detroit. “We are working to maximize the existing capacity we have, but we are at capacity so we are exploring all options.”
Thomas also warned that the auto industry would face a “catastrophic” scenario if the United States and Canada fail to reach a new trade deal by the end of the year, as Trump threatened to double tariffs on Canadian vehicles and parts from 25% to 50% on January 1 if the two countries fail to reach an agreement.
Honda said it has built more than 33 million vehicles and more than 39 million engines in the United States since U.S. auto production began in 1982.
The Japanese automaker currently has more than 30,000 employees in the United States.
Gn bussni
