The Japanese company is taking American EV production very seriously.
As is the case with all manufacturers who have a goal of being relevant in the next 20 to 30 years, Honda has announced that it will be investing a large sum of cash in the USA to re-tool three of its facilities for electric vehicle production. Currently, there is a clear dedication to ICE products, such as the Honda Pilot TrailSport, but there's no denying that Honda is fully committed to the electric car.
This latest announcement reveals that the Japanese company who has had a long history in the country will be forking out $700 million into three of its five facilities in Ohio. Included in this is the Marysville Auto Plant where Honda started its American production journey with its Gold Wing motorcycle range.
Aiding its venture in producing batteries for electric cars is LG. The two have already committed $3.5 billion for a new plant which will be located in Fayette County, Ohio. Thanks to this, 2,200 new jobs will be introduced to the region.
Honda EV production in the USA aims to kick off in 2023 with the Prologue and Acura ZDX which are being developed in conjunction with General Motors. By 2040, the goal is to only have fully electric products in its line-up.
Why does it cost this much to re-tool its facilities? Honda explains that the Marysville Auto Plant, East Liberty Auto Plant, and Anna Engine Plant will all be completely reconfigured so that they can be equipped to produce its upcoming electric car range. Included in this budget will be the training of every current and future staff member.
Honda adds that Ohio is just the starting point of its investment and that it will be expanding developments to its other facilities across the country. Ohio will be the central hub of its EV production nonetheless, so most of the production, purchasing, and product development will take place in this region.
In the meantime, locally produced products such as the recently introduced 2023 Honda CR-V will continue to be assembled at full production speed. Honda will also maintain focus on qualifying for the recently revised EV tax credit system that motivates more electric car production in the country. This latest round of investments should certainly help the brand's case.