Honda plans to invest $2.5 bln to build hybrid vehicle plant in Ohio, Nikkei says

Japan's Honda Motor ​is in the final stages ‌of preparations ​to build a new hybrid vehicle production plant in Ohio, the Nikkei business daily said on Thursday.

Honda plans to invest ‌about 300 billion yen to 400 billion yen ($1.90 billion to $2.53 billion) in the new plant, expected to start production in 2030, the daily said. A spokesman for Honda in the ‌US said, "No decisions have been made at this stage regarding a new plant in ‌the US."

Last month, a senior executive said Honda might not build an eighth assembly plant in North America unless a key trade deal is extended. The Trump administration is currently negotiating with Canada and Mexico over ⁠the ​fate of the free ⁠trade deal known as USMCA.

Honda Executive Vice President Noriya Kaihara said the automaker is close to full production ⁠capacity in North America and needs a new factory. However, "if there is no USMCA agreement in the ​future, we may have to change our direction," Kaihara said, adding that Honda needs ⁠to decide within a year or two and would like the plant to be running by around ⁠2030. ​Last year, Hyundai Motor told President Donald Trump's administration that uncertainty about USMCA was delaying its investment decisions.

This year, Honda indefinitely suspended its Canada EV project, an $11 billion ⁠investment plan to produce electric vehicles and batteries. It also canceled three planned EVs for the ⁠US market. Last year, ⁠Honda said it was shifting production of its U.S.-bound five-door Civic hybrid model from Japan to Indiana.

($1 = 157.8800 yen)