Honda Plans $3 Billion Ohio Plant With Capacity for 240,000 Vehicles

Honda plans to invest $3 billion in an Ohio assembly plant that would expand its U.S. manufacturing capacity for gasoline-powered, hybrid and electric vehicles. Honda said demand for its vehicles was a reason for adding capacity. The new plant is expected to focus on hybrids.

The proposed plant would be near Honda’s existing facilities in Marysville, Ohio, and Honda expects production to begin in 2029. The plant is designed to produce up to 240,000 vehicles a year and is expected to create more than 2,000 jobs. Honda has not named the models it plans to build there.

Honda expects the new plant to bring its annual U.S. light-duty vehicle capacity to about 1.3 million. The company operates 12 manufacturing plants in the country; eight produce engines or light-duty vehicles.

Honda has made vehicles in the United States since 1982. It has built more than 33 million vehicles and more than 39 million engines in the country, and employs more than 30,000 people in the U.S. The proposed Ohio site would be its first new U.S. mass-production vehicle assembly plant since its Indiana plant opened in 2008.

The company also has manufacturing operations elsewhere in Ohio. A $70 million performance vehicle facility opened in the state in 2016, and a multibillion-dollar joint-venture battery plant began operating there earlier this year.

Honda’s electric-vehicle plans have shifted this year. It canceled three electric models planned for the U.S. market. Honda indefinitely suspended its proposed Canadian electric vehicle and battery project.

Honda has said tariffs are affecting its business. It has also warned about a potential increase in tariffs on Canadian vehicles and parts.