Honda stated on Monday that it will invest $3 billion to build a new vehicle assembly plant near its existing operations in Marisville, Ohio.
The factory is planned to start production in 2029, with an annual production capacity of up to 240,000 units, and it will create more than 2,000 jobs.
The new factory will mainly focus on hybrid vehicle models. Hybrid vehicles have become increasingly popular in the United States in recent years. However, the factory will also have the capability to produce both fuel-powered and electric vehicle models.
This factory will increase Honda's annual production capacity of light vehicles in the United States to 1.3 million units. This is also Honda's first major new mass-production assembly facility since the launch of its Indiana plant in 2008.
Automobile manufacturers are shifting more of their production capacity to the United States in order to avoid tariffs and reduce high transportation costs. Audi recently announced that it will invest $4 billion to build a factory in Georgia.
Honda suspended its $11 billion electric vehicle project in Canada in May. Reports also indicate that if a trade agreement is not reached, the tariffs imposed by the United States on Canadian cars could double to 50% in January next year.
