Honda Will Build A $3 Billion Car Plant In Ohio

Honda is betting big on hybrids in North America and has announced it will build a $3 billion factory in Ohio focusing on new hybrid models. The new site will join its existing operations in Ohio, which include the Anna Engine Plant and the Honda Transmission Plant-Ohio. It will also increase the brand's U.S. manufacturing capacity to roughly 1.3 million vehicles a year.

The new factory will be positioned near Honda's other Ohio auto plants and is expected to begin production in 2029. It will employ more than 2,000 workers and be capable of building up to 240,000 vehicles a year. The site is set to play a crucial role in Honda and Acura's plans to launch 15 new hybrid models globally by the end of the decade, with a particular focus on the North American market.

Honda says the factory will incorporate "leading-edge automation, data-driven technologies and flexible production systems" to be one of the most advanced factories of its kind in the world. Traditional gasoline-powered models will be built alongside new hybrids at the site, and the plant will also be flexible enough to produce battery-electric vehicles.

In addition to locking in an all-new factory for Ohio, Honda is retooling the Anna Engine Plant to build a new four-cylinder engine destined for compact and midsize vehicles built in North America. The Honda Transmission Plant-Ohio is also being updated to support two next-generation Honda hybrid powertrains. These hybrids will first be used by compact and midsize vehicles starting next year, before production of a hybrid setup for larger models starts "in the coming years." Honda has also confirmed it is retooling the Alabama Auto Plant site to boost vehicle production and manufacture a new hybrid V6.

The Japanese company hasn't specified which of its vehicles will be built at the new Ohio plant. A September report on Honda's planned Ohio hybrid factory indicated that the next-generation Acura MDX could be built at the plant, as could Acura's upcoming three-row, eight-seat SUV. The same report suggested that Honda itself may also build the rumored "Pilot XXL" at the same Ohio factory.

Honda's next-generation hybrid system was previewed late last year and includes a new lightweight platform. The fifth-generation hybrid system is expected to debut with the new CR-V and should include a 2.0-liter four-cylinder working alongside a pair of updated electric motors. All models using Honda's new hybrid powertrain should also get the same S+ Shift system as the new Prelude, which simulates traditional gear shifts. Honda is targeting more than 10% better fuel economy and a 30% reduction in production costs compared with the current powertrain.

Similar advancements are expected with Honda's new V6 hybrid. It was also showcased last November and pairs the new V6 with up to three electric motors in all-wheel-drive models. Honda says models with this powertrain should accelerate 10% quicker than current non-hybrid V6 models and deliver a 30% improvement in fuel economy.