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Honda plans to spend about $3 billion on a new Ohio factory designed to build gasoline, hybrid and potentially electric vehicles, with production scheduled to start in 2029. The facility and upgrades at existing plants support a wider hybrid rollout, while Honda has canceled several planned EVs; the company says the new plant could still accommodate EV production later.
Honda plans to invest about $3 billion in a new vehicle factory in Ohio and upgrade other U.S. facilities to support a broader hybrid rollout, redirecting manufacturing investment after canceling several planned electric vehicles. The new plant is scheduled to open in 2029 and is designed to build gasoline and hybrid vehicles, while retaining the ability to add EV production later, according to the source report.
The proposed factory would be Honda’s fourth auto plant in Ohio and its ninth car-related production facility in the United States. The company estimates it could build 240,000 vehicles a year, add more than 2,000 jobs and lift Honda’s total annual U.S. production capacity to 1.3 million vehicles. The report says the plant would increase Honda’s hybrid powertrain system capacity in Ohio by 250%.
Honda is also retooling existing sites to support hybrid manufacturing. The facilities named in the report are the Alabama Auto/Engine Plant, the Anna Engine Plant and Transmission Plant in Ohio, and the Transmission Plant in Georgia. The changes include equipment and new production lines; details on the cost and timing of each upgrade were not provided in the supplied report.
The investments support a plan to introduce at least 15 new hybrid models globally, with most also intended for the U.S. market, according to the report. Honda is developing a next-generation hybrid system that it says is designed to be 10% more efficient than the generation introduced in 2023. New models are expected to begin appearing in 2028. A Honda sedan and an Acura crossover have been shown, but the report says neither vehicle has been confirmed as a production model.
Ohio Capacity Shifts Toward Hybrids
The plan ties Honda’s product strategy to a substantial change in its U.S. manufacturing footprint. Building capacity for hybrids at scale could give the company more room to supply vehicles that combine gasoline engines and electric motors, while it pauses or revises some of its dedicated EV plans. For workers and Ohio communities, Honda projects more than 2,000 jobs at the new facility, although the report does not detail hiring schedules or job categories.
The plant’s stated flexibility matters because Honda is not presenting the investment as a permanent rejection of electric vehicles. Its ability to accommodate EVs in the future gives the company a possible route to adjust production if demand or its product plans change. The immediate emphasis, however, is on gasoline and hybrid vehicles, with a factory opening not expected until 2029.
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From Canceled EVs to Hybrid Investment
Honda had planned to build the Acura RSX and the Honda 0 Series Saloon and SUV at an EV hub in Ohio. The supplied report says the company later scrapped those plans after major financial losses and canceled the projects before production-ready vehicles had rolled off the assembly line. It reports that Honda posted its first loss in nearly 70 years and that $9 billion was lost, though it does not provide a breakdown of that figure or clarify the period and accounting behind it.
Honda’s new direction emphasizes hybrids rather than abandoning electrification altogether. The automaker says the new factory could be adapted to include EVs, and the next-generation hybrid system is expected to offer electric all-wheel drive. The report says crossovers are expected to make up most of the planned hybrid lineup, but Honda has not confirmed the full model list.
Costs, Models and EV Timing
The report does not specify when Honda formally announced the plant, provide a detailed construction schedule, or identify the exact allocation of the $3 billion investment among construction and equipment. The 2029 opening date and production capacity are company plans, not evidence that the facility is already operating or that output has been reached.
The identities and launch timing of most planned hybrids remain unsettled. The sedan and Acura crossover shown by Honda have not been confirmed for production, and the company has not released a full U.S. lineup or pricing. It is also unclear when, or under what conditions, the Ohio factory might add EV production. The reported $9 billion loss tied to the canceled EV effort is not broken down in the supplied material, so its components and precise accounting basis cannot be established here.
Plant Buildout and 2028 Models
The next milestones are the rollout of Honda’s new hybrid models, expected to begin in 2028, and construction of the Ohio facility ahead of its planned 2029 start. Honda is also expected to continue equipment and production-line upgrades at its existing plants. Future company announcements should clarify which models will reach showrooms, how manufacturing capacity will be phased in, and whether EV production will be included at the new site.
Key Questions
How much is Honda planning to spend on the new Ohio plant?
The reported estimate is about $3 billion. The source does not provide a detailed breakdown of how the investment will be spent.
When is the factory expected to open?
Honda’s new Ohio facility is scheduled to become operational in 2029. That is a planned date, not a report that production has begun.
Will the plant build only hybrid vehicles?
No. It is initially aimed at gasoline and hybrid vehicles, but Honda says the factory can be adapted to build EVs in the future.
How many jobs and vehicles could the plant support?
The report says Honda expects the facility to add more than 2,000 jobs and have annual capacity for 240,000 vehicles. These are projected figures.
When will Honda’s new hybrid models arrive?
The first models from the broader hybrid push are expected to debut in 2028, according to the report. Honda has not confirmed the sedan and Acura crossover shown as production vehicles.
Source: insideevs.com
