Japanese automaker Honda has announced a $3 billion investment to build a new hybrid vehicle assembly plant in central Ohio, expected to create more than 2,000 jobs and begin production in 2029, the company confirmed on November 9.
The new facility will have an annual production capacity of 240,000 vehicles, increasing Honda’s U.S. light-duty vehicle capacity to 1.3 million units per year. The plant will be Honda’s fourth auto manufacturing facility in Ohio, joining existing operations in Marysville, Anna, and Greensburg. The company also plans to expand its Anna Engine Plant and Transmission Plant in Ohio, with a total investment of $3.38 billion and the creation of 2,390 additional jobs, according to Ohio officials.
Ohio Gov. Mike DeWine praised the decision, stating, “Honda’s leadership could have chosen to build this plant anywhere in the world, but they chose Ohio because there are so many advantages to being here.” The project received tax credit approval from the state on the same day as the announcement.
Honda’s investment aligns with its broader strategy to expand hybrid vehicle production in North America. The company has committed to introducing 15 new Honda and Acura hybrid models globally by 2030, though it has suspended electric vehicle sales goals and indefinitely delayed an $11 billion EV project in Canada as part of a $9 billion EV writedown.
In Canada, Honda will retool its Alliston, Ontario plant with an $867 million investment, including $313 million from the federal government and $156 million from Ontario, to expand hybrid and gasoline vehicle production. The upgrades will support 4,000 Canadian employees and enhance manufacturing flexibility. Industry Minister Mélanie Joly called the investment “a strong Canadian auto sector where workers build the cars of the future.”
Honda also plans to build a new V6 hybrid engine plant in Alabama and retool transmission plants in Ohio and Georgia, while reintroducing engine production in Ontario. The company currently operates 12 manufacturing plants in the U.S., eight of which produce engines or light-duty vehicles.
The announcement follows a wave of major automotive investments in the U.S., including Volkswagen’s $4 billion Georgia plant and Toyota’s $3.6 billion Texas expansion, as automakers adapt to U.S. tariffs and rising logistics costs. Honda’s new Ohio plant will be its first new U.S. vehicle assembly facility since 2008 and its first mass-production plant capable of producing internal combustion, hybrid, and electric vehicles in a single location.