[DigitalToday reporter Hyunwoo Choo (추현우)] Japan’s Honda will invest $3 billion in its U.S. hybrid strategy to build a new auto plant in Ohio. InsideEVs, an EV-focused outlet, reported on Monday that the plant will mainly produce hybrid and gasoline vehicles but will be designed to make EVs if needed.

The new plant will be Honda’s fourth auto plant in Ohio and its ninth auto-related production facility in the United States. Alongside the investment, Honda plans to introduce at least 15 new hybrid models globally, with many allocated to the U.S. market.

The investment is a key production overhaul plan that Honda put forward after stepping back from its existing EV strategy. Honda had planned to produce the Acura RSX, the Honda 0 Series sedan and the Honda 0 Series SUV at an Ohio EV hub, but cancelled all of them. It then recorded its first loss in nearly 70 years and posted a $9 billion loss.

Honda then chose ultra-efficient hybrids as a new pillar for the U.S. market. It is developing several hybrid models, with the first vehicle due to be launched in 2028. The next-generation hybrid powertrain will include electric all-wheel drive, and much of the lineup will consist of crossovers. The new system is designed to be 10 percent more efficient than the current generation unveiled in 2023.

The new Ohio plant will be built right next to the three existing plants and is targeted to begin operations in 2029. It will add more than 2,000 jobs and have annual production capacity of 240,000 vehicles. Total annual production capacity in the United States will rise to 1.3 million, and Ohio’s hybrid powertrain system production capacity will expand by 250 percent.

Honda is also revamping existing plants. Its Alabama auto and engine plant, its Ohio Anna engine and transmission plants, and its Georgia transmission plant are expanding equipment and production lines.

Earlier this year, Honda unveiled its hybrid plans and presented a Honda-brand sedan together with an Acura-brand crossover. Both vehicles have yet to be finalised.