Honda Motor announced Monday it plans to invest $3 billion to build a new vehicle assembly plant near Marysville, Ohio, with production expected to begin in 2029 and capacity for 240,000 vehicles a year. The automaker said the plant is expected to create more than 2,000 jobs and is expected to be capable of building internal combustion, hybrid and all-electric vehicles.
The new facility is expected to increase Honda's light-duty vehicle capacity in the US to 1.3 million units a year. Honda currently operates 12 US manufacturing plants, eight of which make engines or light-duty vehicles, and employs more than 30,000 people in the country. It will be the company's first new mass-production vehicle assembly plant in the US since it opened a facility in Indiana in 2008, following a $70 million performance-vehicle facility in 2016 and a multibillion-dollar joint venture battery plant, both in Ohio.
The announcement comes as the auto industry tries to localize more production amid President Donald Trump's tariffs and inflated logistics costs that have cut into profits. Audi announced about two weeks ago it would invest more than $4 billion in its first US manufacturing facility in Georgia, and General Motors, Ford, Toyota and Hyundai have also recently said they will spend billions of dollars on new or updated US facilities. Honda's announcement comes after the automaker indefinitely suspended an $11 billion plan to produce all-electric vehicles and batteries in Canada in May. It also canceled three planned EVs for the US market.
Bob Nelson, executive vice president of American Honda Motor, described the plan as more than a new factory. “This is not simply an investment in another plant. It is an investment in the future of Honda manufacturing in America,” he said at the announcement at the company's US heritage center in Ohio.
Jennifer Thomas, senior vice president of corporate affairs at American Honda Motor, said in Detroit on Oct. 27 that automakers need to build in the US to compete. “In order to be competitive in this market, you're going to need to build products here,” she said. “We are focused on trying to maximize the existing capacity that we have, but we are at capacity, and so we're exploring all options.” Thomas also warned the industry faces a “catastrophic” scenario if the US and Canada cannot reach a new trade deal by the end of this year. Trump has threatened to double tariffs on Canadian vehicles and parts from 25 percent to 50 percent on Jan. 1 if the countries do not reach a deal.
Honda said nearly all of the vehicles it sells in the US, including its Acura luxury brand, are produced in North America, with more than 60 percent built in the US. It said it has built more than 33 million vehicles and more than 39 million engines in the US since it started auto production there in 1982.
Analysis
Why This Matters
- The plant is Honda's first new mass-production US vehicle assembly plant in nearly two decades and will lift its US light-duty capacity to 1.3 million vehicles a year.
- It is one of several large US manufacturing investments announced by automakers as tariffs and logistics costs push the industry to localize production.
- The flexible plant will let Honda build petrol, hybrid and electric vehicles on the same lines, giving it room to adjust to shifting demand.
Background
Honda has been building vehicles in the US since 1982 and says it has produced more than 33 million vehicles and 39 million engines there. It employs more than 30,000 people across 12 manufacturing plants. The new Ohio investment follows recent US expansion announcements by Audi, General Motors, Ford, Toyota and Hyundai, and comes after Honda suspended an $11 billion electric vehicle and battery plan for Canada in May.
Key Perspectives
- Bob Nelson, executive vice president of American Honda Motor: “This is not simply an investment in another plant. It is an investment in the future of Honda manufacturing in America.”
- Jennifer Thomas, senior vice president of corporate affairs at American Honda Motor: “In order to be competitive in this market, you're going to need to build products here.” She also warned the industry faces a “catastrophic” scenario if the US and Canada do not reach a new trade deal before threatened 50 percent tariffs on Canadian vehicles and parts take effect.
What to Watch
- Whether the US and Canada reach a new trade deal by the end of 2026; without one, tariffs on Canadian vehicles and parts are due to double to 50 percent on Jan. 1.
- What happens to Honda's suspended $11 billion Canadian electric vehicle and battery plan and its canceled US EV models as the Ohio plant takes shape.
- Construction and hiring milestones ahead of the plant's planned 2029 opening.
Checked
12 claims in this story checked against 1 source: 12 supported.
Show each claim
- SupportedHonda plans to invest $3 billion in a new vehicle assembly plant in Ohio.US Top News and Analysis: “Honda Motor plans to invest $3 billion to build a new vehicle assembly plant in Ohio, the automaker announced Monday.”
- SupportedThe plant is expected to create more than 2,000 jobs.US Top News and Analysis: “is expected to begin production in 2029, have a capacity for 240,000 vehicles annually and create more than 2,000 jobs.”
- SupportedThe plant is expected to have capacity for 240,000 vehicles a year.US Top News and Analysis: “is expected to begin production in 2029, have a capacity for 240,000 vehicles annually and create more than 2,000 jobs.”
- SupportedProduction at the plant is expected to begin in 2029.US Top News and Analysis: “is expected to begin production in 2029”
- SupportedThe plant is expected to be capable of building combustion-engine, hybrid and all-electric vehicles.US Top News and Analysis: “The facility is expected to be capable of producing traditional vehicles with internal combustion engines, all-electric vehicles and hybrid models”
- SupportedHonda executive Bob Nelson said, “This is not simply an investment in another plant. It is an investment in the future of Honda manufacturing in America.”US Top News and Analysis: “"This is not simply an investment in another plant. It 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 U.S. heritage center in Ohio.”
- SupportedThe plant is expected to increase Honda’s US light-duty vehicle capacity to 1.3 million units a year.US Top News and Analysis: “The plant is expected to increase Honda's light-duty vehicle capacity to 1.3 million units annually in the U.S.”
- SupportedThe Ohio plant will be Honda’s first new US mass-production vehicle assembly plant since its Indiana facility opened in 2008.US Top News and Analysis: “It's the company's first new mass production U.S. vehicle assembly plant since it opened a facility in Indiana in 2008.”
- SupportedJennifer Thomas said in Detroit on Oct. 27, “In order to be competitive in this market, you're going to need to build products here.”US Top News and Analysis: “"In order to be competitive in this market, you're going to need to build products here," Thomas, senior vice president of corporate affairs, said Oct. 27 in Detroit.”
- SupportedThomas said Honda was at capacity and exploring all options.US Top News and Analysis: “"We are focused on trying to maximize the existing capacity that we have, but we are at capacity, and so we're exploring all options."”
- SupportedHonda indefinitely suspended an $11 billion plan to produce electric vehicles and batteries in Canada in May.US Top News and Analysis: “Honda's announcement comes after the automaker in May indefinitely suspended an $11 billion investment plan to produce all-electric vehicles and batteries in Canada.”
- SupportedTrump has threatened to raise tariffs on Canadian vehicles and parts from 25% to 50% on Jan. 1 if the countries do not reach a deal.US Top News and Analysis: “Trump has threatened to double tariffs on Canadian vehicles and parts from 25% to 50% on Jan. 1 if the two countries don't reach a deal.”
