Honda Motor Eyes First New North American Factory in Nearly 20 Years With $2.5 Billion Ohio Hybrid Plant: Report

Honda Motor Co., Ltd. (NYSE:HMC) is reportedly in advanced discussions to establish a hybrid vehicle plant in the U.S., with an investment ranging between 300 billion and 400 billion yen ($1.8 billion to $2.5 billion). The proposed plant could potentially be located in Ohio. If negotiations are successful, the Japanese automaker aims to start operations by 2030, Nikkei Asia reported on Thursday. If it goes ahead, this will be Honda’s first new factory in North America in nearly 20 years. The decision to focus on hybrid vehicles is part of Honda’s strategy to regain its momentum in the market. However, the final decision depends on negotiations over state subsidies, leaving some uncertainty around the plan, as per the report. Honda’s move comes as rising U.S. gasoline prices amid the U.S.-Iran war boost demand for fuel-efficient hybrid vehicles. Honda Motor did not immediately respond to Benzinga’s request for comments. Read Also: SoftBank Launches $11.1 Billion Bond Sale to Fund Final $10 Billion OpenAI Investment Tranche Japanese Automakers Expand US Footprint In July, Toyota Motor Corp (NYSE:TM) decided to shift production of the Tacoma pickup truck from Mexico to Texas, investing $3.6 billion in the process. This was hailed as a move promoting lower vehicle costs and more consumer choice, according to President Donald Trump‘s Transportation Secretary Sean Duffy. Toyota said the expansion brings its total investment in San Antonio to $8.3 billion since 2003 and reaffirmed its commitment to operations across North America. Duffy welcomed the investment, highlighting the creation of 2,000 jobs. Senate Pushes To Block Chinese Cars Meanwhile, President Donald Trump’s openness to Chinese automakers building vehicles in the U.S. is facing a bipartisan Senate push to permanently block Chinese cars, software, and key components from the American market. Sens. Bernie Moreno (R-Ohio) and Elissa Slotkin (D-Mich.) are seeking unanimous Senate approval for the Connected Vehicle Security Act of 2026, which has 51 Senate supporters and more than 100 House cosponsors. The effort comes as Trump meets Chinese President Xi Jinping and contrasts with Trump’s recent comments that he would accept Chinese automakers manufacturing in the U.S. if they employed American workers. Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors. Read Also: Tesla’s Cybercab Strategy Hinges on One Giant, Unanswered Question Image via Shutterstock