Honda Motor, a Japanese automaker, has announced plans to increase its investment in three auto manufacturing facilities in Ohio, US, by $300 million. This decision is aimed at enhancing the plants’ capability to manufacture electric vehicles (EVs), hybrids, and gas-powered vehicles on the same assembly line, as reported by Reuters.
Jennifer Thomas, the senior vice-president of Honda’s US unit, stated that the company had initially planned to invest $700 million in these facilities in 2022, but that figure has now been revised to $1 billion. Honda is also collaborating with LG Energy Solution to construct a battery plant in Ohio as part of its Honda EV Hub, with a total investment estimated to be $4.4 billion.
The retooling of the Marysville Auto Plant, East Liberty Auto Plant, and the Anna Engine Plant in Ohio is currently underway. Thomas highlighted the importance of this investment, stating that “We are creating the flexibility to produce ICE, hybrid, and battery-electric vehicles on the same production lines in Ohio. This enables us to quickly respond to changes in customer demand and market conditions.”
This investment announcement comes at a time of policy shifts in the US. Thomas expressed concerns about the US administration’s intention to reduce EV incentives, particularly following the revocation of a 2021 executive order by former President Joe Biden that aimed for half of new US vehicle sales to be electric by 2030.
In the revoked executive order, President Donald Trump also announced the halting of funding for EV charging stations, sought to end state waivers for zero-emission rules by 2035, and considered eliminating EV tax credits. Thomas emphasized the need for stable policies that promote the industry’s strategic decision-making, stating that “We must find a way to avoid the dramatic political whiplash every four years in favor of policies that promote stability.”
Additionally, Thomas highlighted the importance of incentives for EVs in promoting competitiveness and increasing EV sales, stating that undermining these incentives could lead to a decrease in EV sales. Overall, Honda’s increased investment in Ohio reflects its commitment to innovation and sustainability in the automotive industry.
