Honda grows Ohio manufacturing investment to over $1 billion

Honda is betting big on its U.S. manufacturing operations as part of its larger EV strategy by announcing another investment of $300 million in its three Ohio auto plants.

First things first: News of Honda’s $300 million investment in the Ohio plants follows a 2022 announcement by the Japanese automaker of plans to invest $700 million into the facilities, now bringing the total investment to $1 billion.

• The three Honda Ohio auto plants slated for the investment include the automaker’s Marysville Auto Plant, East Liberty Auto Plant, and the Anna Engine Plant in Ohio.

• Focused on providing Honda with more production flexibility to meet consumer demand, the investment will go toward retooling the Ohio facilities to build EVs, hybrids, and ICE-powered vehicles on the same assembly line.    

• Honda is also building a battery plant in Ohio as part of a joint venture with LG Energy Solution, an overall investment pegged at $4.4 billion.

Between the lines: When Honda first announced plans to invest in the Ohio facilities in 2022, it was under the Biden administration, which enacted a number of measures aimed at supporting the wider adoption of electric vehicles in the U.S. The possibility of Trump reversing many of those measures could impact Honda’s investment in electrification (as with other automakers), something that Honda has taken note of.

• One of the biggest factors poised to impact the EV sector in the business is the elimination of incentives like the $7,500 federal tax credit, Jennifer Thomas, senior vice president at Honda’s U.S. Unit told Reuters.

• Trump’s firm stance on reversing federal EV measures could have a ripple effect when it comes to state and local support, which can prove pivotal to the success of EV initiatives like Honda’s plant investments in Ohio.

• Honda is also likely upping its U.S. investments in light of the newly sanctioned tariffs against Canada and Mexico.   

What they’re saying: "We must find a way to avoid the dramatic political whiplash every four years in favor of policies that promote stability and allow for our industry’s strategic decision-making, said Jennifer Thomas, senior vice president, Honda U.S. Unit, per Reuters.

Bottom line: Honda, much like some other automakers, seems fully committed to navigating the challenges that the Trump administration’s position on trade and electrification might pose. Then again, many car companies already have too much invested in the transition to EVs to reverse course now or deviate too far from earlier plans in the sector.

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