Honda Plans New U.S. Hybrid Vehicle Plant

On August 27, Honda Motor Co. Executive Vice President and Representative Executive Officer Toshihiro Kibe announced in Washington, D.C., that the company plans to establish a new production facility in the United States to meet growing local demand for hybrid vehicles. Kibe stated that expanding production capacity is necessary and indicated that the next manufacturing site should be located in North America, with the U.S. being the "most likely location" for the new plant. Currently, Honda operates vehicle assembly plants and key component production facilities in Alabama, Indiana, and Ohio, as well as factories in Canada and Mexico. Kibe also noted that Honda’s strategy in North America has shifted from aggressively promoting battery electric vehicles to focusing on hybrid electric vehicles, in response to customer demand for efficient and affordable mobility solutions. He added that pricing for these models is relatively high and does not require additional incentives.